Argus Research maintains an optimistic stance on the potential of artificial intelligence (AI) to greatly benefit the future business prospects of Twilio. Known for providing a comprehensive communications platform that enables companies to effectively engage with their customers through various channels like text, voice, and video, Twilio stands to gain significantly from the integration of AI technology.
In light of this, Argus Research analyst Jim Kelleher recently upgraded his intermediate-term rating on Twilio stock to Buy from Hold. Kelleher subsequently established a 12-month price target of $72, while maintaining a long-term rating of Buy for the stock.
Kelleher elaborated on the reasoning behind the rating upgrade, stating, “We see AI as a key accelerant for Twilio’s business as clients seek to make their customer-communications tools more capable and efficient.”
This positive outlook has had a direct impact on Twilio’s shares, which were up 1.9% to $61.74 as of Friday.
Adding to the favorable atmosphere surrounding Twilio, the company reported better-than-expected second-quarter earnings earlier in the week. In response to these results, Twilio also raised its full-year guidance for operating income. The sequence of robust June quarter performances from companies like Meta Platforms (META), Alphabet (GOOGL), and Amazon.com (AMZN) has provided further indications of a rebound in the digital advertising market. This news further reinforces the positive prospects for Twilio.
With optimism in mind, Kelleher noted, “In this environment, we look for Twilio’s clients to increase spending on customer engagement platforms and business tools.”
Although Wall Street’s opinions on Twilio stock remain mixed, with FactSet reporting that 44% of analysts have rated it as Buy or equivalent, 47% as Hold, and 9% as Sell, the overall sentiment leans towards the positive end.
In conclusion, Argus Research firmly believes that Twilio’s integration of AI technology will play a pivotal role in enhancing its business capabilities and efficiency. As the digital advertising market shows signs of recovery, Twilio stands to benefit from increased spending on customer engagement platforms and business tools.
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