© Reuters. Twilio (TWLO) hits fresh lows after earning 3rd downgrade after results
Twilio (NYSE:) shares trade over 1.2% lower in Friday pre-open after Mizuho analysts downgraded the stock to Neutral from Buy with a price target of $55 per share (down from $90).
The analysts cite near-term challenges that are impacting Twilio’s growth profile. The company recently reported and guidance that was below consensus.
“The growth deceleration reflects the difficult macro backdrop (as well as tough Y/Y comps from crypto) that will likely continue to pressure growth over the near term,” the analysts said in a client note.
As a result, Twilio stock fell to fresh year-to-date lows as investors digest the latest updates.
“While we remain positive on TWLO’s leadership in CPaaS and potential to become a B2C CRM platform with Engage, we expect TWLO’s growth to remain subdued in the near term and thus lower our estimates.”
The analysts added that they don’t see any near-term catalysts that could help Twilio stock to re-rate higher.
Goldman Sachs and KeyBanc analysts also downgraded TWLO stock this week.
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