Analysts rate Twilio Inc. (TWLO:NYE) with a Strong Buy rating and a $171 target

STA Research
by: STA Research
Twilio stock price

Based on the Twilio stock forecast from 23 analysts, the average analyst Twilio stock price target is USD 171.89 over the next 12 months. Twilio Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Twilio stock forecast is Neutral, which is based on 4 positive signals and 4 negative signals. At the last closing, Twilio stock price was USD 77.97Twilio stock price has changed by +10.07% over the past week, -8.93% over the past month and -77.20% over the last year.

 

About Twilio Inc. (TWLO:NYE):

Twilio Inc., together with its subsidiaries, provides a cloud communications platform that enables developers to build, scale, and operate customer engagement within software applications in the United States and internationally. Its customer engagement platform provides a set of application programming interfaces that handle the higher-level communication logic needed for nearly every type of customer engagement, as well as enable developers to embed voice, messaging, video, and email capabilities into their applications. The company was incorporated in 2008 and is headquartered in San Francisco, California.

 

What we like:

Superior risk adjusted returns:

TWLO stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value:

Twilio stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt:

The company is less leveraged than its peers, and is among the top quartile, which makes it more flexible. However, do check the stock forecast and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Superior Revenue Growth:

TWLO stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

High volatility:

The total returns for TWLO stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Negative cashflow:

Twilio stock forecast shows that the company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

Twilio stock forecast shows that the company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

TWLO stock has shown below median earnings growth in the previous 5 years compared to its sector.

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