Twilio Inc. (TWLO) shares rallied Friday following the cloud-computing company's analyst day where the company pledged 30% or higher annual growth over the next four years. Twilio shares surged 9.2% to $280.67 in early trading. Cowen analyst J. Derrick Wood, who has an outperform rating and hiked his price target to $350 from $310, said the forecast was "quite impressive" and insinuated about $5 billion in revenue by 2024. "This suggests Street estimates are much too low, with consensus at 25% growth in FY21 and 23% in FY22," Wood said. For the current year, analysts surveyed by FactSet expect earnings of 10 cents a share on revenue of $1.6 billion. Of the 28 analysts who cover Twilio, 22 have overweight or buy ratings, five have hold ratings, and one has a sell rating. Of those, 14 hiked price targets following the forecast for an average price target of $307.83, according to FactSet data. For the year, Twilio shares are up 187%, compared with a 4% rise in the S&P 500 index and a 25% gain in the tech-heavy Nasdaq Composite Index .
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 02, 2020 10:07 ET (14:07 GMT)
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