Bank of America raises Twilio price target to $235 on strong execution and product growth confidence

Bank of America increased its price target for Twilio from $225 to $235, maintaining a 'Buy' rating due to confidence in the company's execution and cross-selling strategy. The bank highlighted Twilio's accelerating gross profit growth driven by multi-product adoption, including AI and voice communication tools. They also raised the valuation multiple, reflecting stronger belief in Twilio's potential, and noted a shift toward higher-margin products could boost future margins. Various growth scenarios were outlined, with the base case expecting slower messaging growth but faster voice and other product expansion.