Twilio price target raised to $79 from $78 at Piper Sandler

Piper Sandler raised the firm’s price target on Twilio to $79 from $78 on higher free cash flow, while keeping an Overweight rating on the shares. While shares are pointed down after-hours given the slightly lower beat against buyside expectations, Q2 sales guide slight miss, and implied second half of the year ramp with management still looking to re-build credibility, there were some underlying positives that reflect its January thesis update: total customer additions rebounded, growth is showing stability as headwinds are abating, organic growth is maintaining high-single digit growth, GPM improved, profitability continues to shine through, and importantly, the free cash flow leverage of the business is shining through.