Bank of America Adjusts Ratings on Twilio and GitLab
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
0mins
Should l Buy TWLO?
Source: seekingalpha
- Twilio Upgrade: Bank of America upgraded Twilio from Underperform to Buy, citing the company's potential as a key infrastructure player for AI-driven voice and messaging applications, with projected gross profit growth of 10% year-over-year for FY28E, indicating strong growth prospects.
- Cash Flow Improvement: Analysts expect Twilio's free cash flow margin to expand to 21.9% in FY28E from 18.6% in FY26E, demonstrating ongoing improvements in profitability and cash flow management, which could enhance investor confidence.
- GitLab Downgrade: Bank of America downgraded GitLab from Buy to Neutral, indicating that the risk-reward profile is now balanced until there is strong evidence that its orchestration software development strategy is effective, reflecting market caution regarding its growth outlook.
- Price Target Adjustments: Twilio's price target was raised from $110 to $190, reflecting analysts' optimism about its future performance, while GitLab's target was lowered from $58 to $27, highlighting concerns about its growth trajectory.
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Analyst Views on TWLO
Wall Street analysts forecast TWLO stock price to fall
20 Analyst Rating
14 Buy
4 Hold
2 Sell
Moderate Buy
Current: 197.070
Low
100.00
Averages
146.28
High
185.00
Current: 197.070
Low
100.00
Averages
146.28
High
185.00
About TWLO
Twilio Inc. provides a customer engagement platform to build direct, personalized relationships with their customers everywhere in the world. Its platform provides developers with tools to build, scale, and deploy real-time communications within software applications. Its segments include Twilio Communications (Communications) and Twilio Segment (Segment). The Communications segment consists of a variety of application programming interfaces (APIs) and software solutions to optimize communications between its customers and their end users. Its key offerings in its Communications segment include Messaging, Voice, Email (includes Marketing Campaigns), Flex and User Authentication and Identity. Its Twilio Flex is a digital engagement center for the entire customer journey. Twilio Segment is a customer data platform that provides businesses with the tools to harness the power of contextual data by unifying real-time information collected throughout each customer’s journey into a profile.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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