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Critical Insights From Twilio Analyst Ratings: What You Need To Know

Author: Benzinga Insights | March 06, 2024 03:01pm

Twilio (NYSE:TWLO) has been analyzed by 16 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 2 9 3 0
Last 30D 1 0 5 1 0
1M Ago 0 1 2 2 0
2M Ago 0 1 2 0 0
3M Ago 1 0 0 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $68.75, with a high estimate of $110.00 and a low estimate of $50.00. This current average represents a 0.62% decrease from the previous average price target of $69.18.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Twilio is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
J. Derrick Wood TD Cowen Lowers Market Perform $65.00 $72.00
Taylor McGinnis UBS Lowers Buy $74.00 $82.00
Parker Lane Stifel Lowers Hold $60.00 $70.00
Rishi Jaluria RBC Capital Maintains Underperform $50.00 -
Michael Turrin Wells Fargo Lowers Equal-Weight $60.00 $70.00
Samad Samana Jefferies Lowers Hold $60.00 $65.00
Kash Rangan Goldman Sachs Raises Neutral $70.00 $69.00
Patrick Walravens JMP Securities Maintains Market Outperform $110.00 -
Rishi Jaluria RBC Capital Maintains Underperform $50.00 -
William Power Baird Raises Neutral $70.00 $65.00
Michael Latimore Northland Capital Markets Announces Market Perform $66.00 -
Stephen Bersey HSBC Announces Reduce $61.00 -
Ryan Macwilliams Barclays Raises Equal-Weight $70.00 $60.00
James Fish Piper Sandler Raises Overweight $82.00 $75.00
Kash Rangan Goldman Sachs Raises Neutral $72.00 $63.00
Ryan Koontz Needham Raises Buy $80.00 $70.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Twilio. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Twilio compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Twilio's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Twilio's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Twilio analyst ratings.

Delving into Twilio's Background

Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.

Twilio's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining Twilio's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.01% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Twilio's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -33.96%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Twilio's ROE excels beyond industry benchmarks, reaching -3.71%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Twilio's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -3.11%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.12, Twilio adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: TWLO

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