William Blair analyst Arjun Bhatia has reiterated their bullish stance on TWLO stock, giving a Buy rating on August 8.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Arjun Bhatia has given his Buy rating due to a combination of factors that suggest Twilio is poised for sustained growth and profitability. The recent decline in Twilio’s stock price presents an attractive entry point, especially considering the company’s robust growth prospects and its strategic positioning to benefit from advancements in AI. Despite recent investments, which are seen as necessary for future growth, Twilio is expected to maintain its free cash flow target of $3 billion, indicating financial stability.
Twilio’s focus on expanding its product offerings and responding to strong customer demand is expected to drive double-digit revenue growth and margin expansion. The company’s valuation, trading at 14 times its 2026 free cash flow estimate, is considered favorable for long-term investors. The positive momentum in Twilio’s voice services, partly driven by AI, further supports the optimistic outlook. Overall, Bhatia believes that Twilio’s strategic initiatives and market position will lead to meaningful upside potential for the stock.
Bhatia covers the Technology sector, focusing on stocks such as Twilio, InterDigital, and NICE. According to TipRanks, Bhatia has an average return of -0.5% and a 39.54% success rate on recommended stocks.
In another report released on August 8, Wells Fargo also maintained a Buy rating on the stock with a $130.00 price target.