Twilio’s Investor Day Presentation Sparks Optimism, But Caution Remains
New Targets and Positive Preliminary Results Drive Shares Up
Twilio’s recent Investor Day presentation has sent its shares soaring, with a 15% increase in after-hours trading. The company’s new targets and positive Q4 preliminary results have clearly impressed investors. RBC Capital, in particular, has taken notice, raising its price target on Twilio from $50 to $75.
A Cautious Stance Despite Solid Profitability Targets
However, RBC Capital is not entirely convinced, retaining its Underperform rating on the shares. While the firm acknowledges Twilio’s solid profitability targets, it remains cautious due to the highly competitive landscape and uncertainty surrounding the benefits of artificial intelligence (AI).
Encouraging Metrics, But Competition Looms
Twilio’s metrics are undoubtedly encouraging, with a seemingly conservative approach to framing growth. Nevertheless, RBC Capital believes that the company’s growth prospects are still uncertain, and the AI benefits are yet to be fully realized.
Other Analysts Weigh In
Other analysts have also revised their price targets on Twilio, with JMP Securities raising its target to $165 from $110, Stifel to $130 from $110, Piper Sandler to $142 from $94, Morgan Stanley to $144 from $118, and Barclays to $120 from $80.
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