William Blair analyst Arjun Bhatia has reiterated their bullish stance on TWLO stock, giving a Buy rating on November 7.
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Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Twilio’s strategic positioning and growth potential. The recent SIGNAL London conference underscored Twilio’s advancements in voice AI and the prominence of its ConversationRelay offering, which are pivotal in enhancing the company’s communication platform. The integration of Segment’s CDP is also a critical component, enabling brands to provide more contextually relevant communications, thereby strengthening Twilio’s market position.
Furthermore, Twilio’s focus on trust and reliability in messaging, which constitutes a significant portion of its revenue, positions it as a premium provider. The company is expected to gain further market share in messaging and sees substantial opportunities for margin expansion, which should lead to significant free cash flow growth. Twilio’s stock is currently trading at a discount compared to its peers, which, combined with its growth plans and potential for increased operating margins, supports the Buy rating.
Bhatia covers the Technology sector, focusing on stocks such as InterDigital, Atlassian, and Figma, Inc. Class A. According to TipRanks, Bhatia has an average return of -0.7% and a 39.17% success rate on recommended stocks.
In another report released on November 7, Robert W. Baird also maintained a Buy rating on the stock with a $145.00 price target.