Piper Sandler downgrades Twilio to Neutral on fair valuation

As previously reported, Piper Sandler downgraded Twilio (TWLO) to Neutral from Overweight with a price target of $148, up from $145. The firm says that its general view on the company is unchanged, though it expects the re-acceleration narrative will fade later in 2026, free cash flow estimate upside revisions from here are more limited, Twilio has a relatively fair valuation, and the prior capital return narrative was executed on already. Within the communication stack, Twilio remains Piper’s favorite name as the “best house” in this neighborhood, and should continue to be a Voice AI infrastructure beneficiary as a small but fast-growing part of its business. The firm would become more constructive again at a lower level, with the next catalyst being Q4 earnings / initial 2026 guide.