Twilio Inc (NYSE:TWLO) gained fresh support from BofA Securities after analyst Koji Ikeda raised his price forecast to $235 from $225 and reiterated a Buy rating, citing stronger confidence in the company's accelerating gross profit growth and expanding multi-product strategy.
Gross Profit Growth Drives Bullish Outlook
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Ikeda said gross profit dollar growth remains the most important metric for Twilio as the Communications-Platform-as-a-Service company continues benefiting from rising demand for multi-channel communications, AI-driven customer engagement tools, and voice services.
He added that Twilio's improving execution and go-to-market expansion strategy gave BofA more confidence to raise both forecasts and valuation multiples, increasing the firm's EV/CY27E free cash flow multiple to 27.0x from 26.6x.
