William Blair analyst Arjun Bhatia has reiterated their bullish stance on TWLO stock, giving a Buy rating on April 30.
Arjun Bhatia has given his Buy rating due to a combination of factors including Twilio’s impressive quarterly performance and strategic execution. The company reported revenue growth that exceeded expectations, with a notable increase of 12% in the quarter, and raised its full-year guidance. Despite not observing any decline in customer activity, Twilio has taken a cautious approach by not fully incorporating the first-quarter results into its annual outlook, demonstrating prudent management.
Twilio’s core Communications segment showed strong growth, benefiting from international messaging acceleration and effective cross-selling strategies. The company’s stock is trading at a discount compared to its peers, which presents an attractive valuation opportunity. Bhatia is optimistic about Twilio’s potential for continued growth and margin expansion, with the company on track to achieve its medium-term operating margin targets. This positive outlook, combined with the company’s strategic improvements and market positioning, supports the Buy rating.
In another report released on April 30, Robert W. Baird also maintained a Buy rating on the stock with a $130.00 price target.