Goldman Sachs analyst Kash Rangan upgraded Twilio stock to 'buy' from 'hold' and significantly increased the price target to $185 from $77. This upgrade follows Twilio's recent analyst day event and precedes its fourth-quarter results.
Rangan stated that Twilio is 'hitting an inflection point both in terms of narrative and fundamentals' after multiple years of growth compression and strategic actions. He anticipates solid free cash flow generation, supported by the company's aggressive cost reduction and efficiency measures.
The analyst's optimistic view was reinforced by accelerated product velocity and an improved go-to-market strategy, particularly enhancements to the Communications portfolio and generative AI innovations. These factors are expected to expand Twilio's dominant position in the core CPaaS market and potentially lead to upside in 2025 revenue growth estimates.
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