Analyst Patrick Walravens from JMP Securities maintained a Buy rating on Twilio (TWLO – Research Report) and keeping the price target at $110.00.
Patrick Walravens has given his Buy rating due to a combination of factors which highlight Twilio’s strong position and potential for growth. The analyst recognizes Twilio as a market leader within the communications sector, boasting a considerable revenue and a solid operating margin. Moreover, Twilio’s addressable market for Communications as a Service is substantial, and the company has shown a commitment to returning capital to shareholders, evidenced by a $2 billion repurchase program. Additionally, the company’s target to reach non-GAAP operating income breakeven by the second quarter of 2025 for its Segment business unit signals a strategic move towards profitability.
Furthermore, Walravens points out the strategic value of Twilio from an M&A perspective, with potential for both acquisitions and being acquired. The company’s financials appear robust with a projected increase in non-GAAP EPS and revenue over the next two years. Twilio’s current valuation, in terms of its 2025E EV/revenue multiple, is considered attractive compared to its peers. The price target of $110 is aligned with the median of a blended peer group, indicating that the stock could be undervalued at its current trading price. This combination of leadership, market opportunity, financial strategy, and valuation underpins Walravens’s optimistic outlook for Twilio’s stock.
According to TipRanks, Walravens is an analyst with an average return of -7.1% and a 38.23% success rate. Walravens covers the Technology sector, focusing on stocks such as Vertex, Sprinklr, and Datadog.
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Twilio (TWLO) Company Description:
Founded in 2008, California-based Twilio, Inc. provides a cloud communications platform that allows software developers to programmatically make and receive phone calls, send and receive text messages, and perform other communication functions using its web service APIs (Application Programming Interfaces).
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