In a report released today, Derrick Wood from TD Cowen maintained a Hold rating on Twilio, with a price target of $117.00.
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Derrick Wood has given his Hold rating due to a combination of factors, primarily focusing on the revised financial assumptions following Twilio’s recent earnings release. The key adjustment made in the analysis was a reduction in the projected gross margins for the upcoming fiscal years.
Although the revenue, operating margin, and free cash flow estimates have remained relatively stable, the gross margin estimates for FY25 and FY26 were lowered. Specifically, the FY25 gross margin estimate was adjusted from 51.5% to 50.6%, and the FY26 estimate was revised from 51.8% to 51.0%. These changes reflect a cautious outlook on Twilio’s profitability, justifying the Hold rating.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $111.00 price target.