Twilio (TWLO) PT Raised to $200 at UBS

UBS analyst Taylor McGinnis raised the price target on Twilio (NYSE: TWLO) to $200.00 (from $180.00) while maintaining a Buy rating.

The analyst comments "Despite a high bar, TWLO delivered a ~5pt organic revs beat at 16% Y/Y (vs. 14–15% expected), accelerating ~4pts from 12% in 4QF25. Management didn’t flag any specific catalyst, citing broad-based strength across Messaging, Voice, Self-Service, add-ons, geos, industries, etc. Though, we think upside could have been partly driven by AI-led customer support modernization and engagement initiatives (see recent checks HERE), as these trends are increasingly enabling cross-channel interactions (e.g., voice agents triggering SMS follow-ups), growth in 2-way RCS, and more. Results reinforce our view that near-term demand for usage-based models remains stronger than seat-based ones. We’re raising our FY26E organic revs growth to 10.7% Y/Y from 9.0% Y/Y and FCF to $1,106M from $1,064M (both roughly in-line with the high-end of guide), but see potential for ~15% organic growth with ~20% EBIT/FCF margins. While shares aren’t inexpensive at ~19x CY26E EV/FCF, we view the premium as justified given TWLO’s relatively AI-resilient comms infra moat, favorable exposure to usage-based demand, and early—but increasingly tangible—AI-driven tailwinds. We reiterate our Buy rating and raise our price target to $200 (from $180)."

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