BofA Double Upgrades Twilio (TWLO) to Buy, 'Will not be disrupted by AI'

BofA analyst Koji Ikeda upgraded Twilio (NYSE: TWLO) from Underperform to Buy with a price target of $190.00 (from $110.00).

The analyst comments "We upgrade Twilio (TWLO)from Underperform to Buy as we see positive inflections in its strategic positioning in AI and its fundamentals. We think Twilio will prove to be one of the key infrastructure players for AI-driven voice and messaging uses cases, where scale and reliability are critical. We think its key growth metric, gross profit dollar growth will continue accelerating, as we forecast growth of +10% y/y for FY28E, up from +9% for FY26E. This should also drive strong free cash flow margin expansion, which we expect to reach 21.9% in FY28E, up from 18.6% in FY26E. We believe all of this is not yet fully reflected in the stock. Our $190 PO implies 30% upside potential, and is based on 22x EV/CY27E FCF, which is a premium to its peers at 19x."

For an analyst ratings summary and ratings history on Twilio click here. For more ratings news on Twilio click here.

Shares of Twilio closed at $145.30 yesterday.

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