Market Overview

Twilio Analysts Boost Price Targets Following Q3 Report: 'Attractive Growth Story'

Share:
Twilio Analysts Boost Price Targets Following Q3 Report: 'Attractive Growth Story'

Multiple Twilio analysts issued price target increases Tuesday after the cloud company highlighted revenue growth, customer wins and a large addressable market in its third-quarter report. 

Twilio Analysts On Revenue: Twilio Inc (NYSE: TWLO) reported third-quarter revenue that was up 52% year-over-year, surpassing the 46% growth seen in the second quarter.

BofA Securities analyst Nikolay Beliov said Twilio could notch revenue growth of 30% or more in each of the next four years, implying $5 billion by 2024.

“We believe this target is realistic and achievable,” the analyst said.

Beliov raised the price target for Twilio from $335 to $370 and reiterated a Buy rating.

Piper Sandler analyst Brent Bracelin raised the Twilio price target from $315 to $365.

“We remain buyers of TWLO based on the potential for revenue to expand to $6B to $10B within five years as the customer engagement platform of choice,” the Overweight-rated analyst said.

Related Link: Tony Zhang’s Twilio Options Trade

Twilio Analysts On Cloud Customers: Bracelin said key Twilio customers like Nike, Lululemon, Walmart and Netflix are benefiting from Twilio for their direct-to-consumer initiatives.

The top 10 customers represent 14% of Twilio’s sales, the analyst said. Revenue from these customers increased 63% year-over-year.

“The top 10 customers on average are now spending $25M annually, hinting at the scope of the opportunity longer-term to empower new DTC engagements for large enterprise brands,” he said. 

Needham analyst Richard Valera, who maintains a Buy rating on Twilio, said the company is “benefiting from an acceleration of digital transformation plans by many of its customers.”

Twilio noted an expanded partnership with a Fortune 50 bank and new Flex deals with Robinhood and Prometric, the analyst said. 

Analysts On Twilio’s Market: BofA's Beliov said $5 billion in revenue is only 5% market share in a $100-billion market.

Twilio’s business is “diversified across all verticals and customer sizes,” the analyst said. 

Twilio’s voice segment is only 17% of revenue, and the messaging business is rapidly accelerating, he said. 

Mizuho analyst Siti Panigrahi said Twilio "is a durable growth story in software, benefiting from several secular tailwinds."

Panigrahi raised the price target on shares from $350 to $370.

“Twilio remains an attractive growth story in our view,” he said. 

KeyBanc Capital Markets analyst Alex Kurtz rates shares of Twilio with an Overweight and raised the price target from $330 to $350. 

“It has emerged as the pioneer and leader in cloud software API’s for the communications sector,” the analyst said of the company. 

Twilio is poised for “industry-leading revenue growth,” he said.  

TWLO Price Action: Shares of Twilio were down 1.8% at $295.22 at last check Tuesday. 

Courtesy photo. 

Latest Ratings for TWLO

DateFirmActionFromTo
Nov 2020OppenheimerMaintainsOutperform
Oct 2020Canaccord GenuityMaintainsBuy
Oct 2020MizuhoMaintainsBuy

View More Analyst Ratings for TWLO
View the Latest Analyst Ratings

 

Related Articles (TWLO)

View Comments and Join the Discussion!

Posted-In: Alex Kurtz BofA SecuritiesAnalyst Color Earnings News Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
PLTHCanaccord GenuityMaintains6.0
VLDRCraig-HallumInitiates Coverage On23.0
MFACNorthland Capital MarketsInitiates Coverage On15.0
CEREJefferiesInitiates Coverage On18.0
GIIIUBSInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com