Many Analysts Give Twilio a Price Target Raise After Company’s Q3 Results

This week several analysts issued price target boosts on cloud company Twilio, highlighting the company’s revenue growth and large market in the third quarter.

Earlier in the week the company reported third-quarter revenue that was up 52% year-over-year, surpassing the 46% growth seen in the second quarter.

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

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

The analyst raised his price target on the stock from $335 to $370 and kept his “buy” rating.
Piper Sandler analyst Brent Bracelin also raised his 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 analyst said. He has an “overweight” rating on the stock.

According to Bracelin, key Twilio customers like Nike, Lululemon, Walmart and Netflix are benefiting from Twilio for their direct-to-consumer initiatives. The analsyt remarked that the top 10 customers represent 14% of Twilio’s sales. Revenues from these customers have seen a growth of 63% YOY.

“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.

According to Needham analyst Richard Valera, the company is “benefiting from an acceleration of digital transformation plans by many of its customers.” Valera has a “buy” rating on the stock.

The analyst remarks on Twilio’s expanded partnership with a Fortune 50 bank and new Flex deals with Robinhood and Prometric.

Mizuho analyst Siti Panigrahi said Twilio “is a durable growth story in software, benefiting from several secular tailwinds.” The analyst raised his price target from $350 to $370. “Twilio remains an attractive growth story in our view,” he said.

KeyBanc Capital Markets analyst Alex Kurtz upgraded Twilio to an “overweight” rating and boosted his 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,” said Kurtz.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.