© Reuters. Twilio (TWLO) inventory falls after Jefferies downgrade to Maintain
By Senad Karaahmetovic
Jefferies analysts downgraded Twilio (NYSE:) to Maintain from Purchase, sending shares greater than 3% decrease in pre-market Monday.
The analysts highlighted three key the explanation why they’re shifting to the sidelines on Twilio inventory.
- Sees sustained headwinds to near-term development,
- Would not have excessive conviction the Software program rev can develop 30%+, and
- Would not see the medium-term development and margin outlook as notably engaging.
“We consider a combo of macro headwinds and company-specific points are prone to end in development slowing additional in 2023. On the previous, we consider a slowdown in client exercise and a tightening of promoting budgets will end in headwinds to messaging exercise. We’ve got already seen a number of personal corporations that leverage TWLO announce layoffs as they’ve seen development decelerate,” the analysts mentioned in a shopper word.
The analysts want to see extra indicators of success within the software program enterprise earlier than getting extra constructive on Twilio inventory.
The worth goal is lower by over 50% to $50 per share, implying upside of about 3% relative to Friday’s closing worth.