Twilio slips after Morgan Stanley downgrades to "equal-weight"

Twilio

14/06/2024 14:46

** Shares of cloud communication firm Twilio  TWLO.N  falls
3.4% to $53.80 
    ** Morgan Stanley downgrades co to "equal-weight" from
"overweight"; cuts PT to $60 from $70
    ** Primary reason for stepping to sidelines is a lack of a
revenue catalyst over the next 12-18 months, potentially
challenging co's ability to meet FY25 Street expectations - MS
    ** Says near-term transition period required to accommodate
integration between units and management changes could limit
investor enthusiasm and upside potential 
    ** Expects TWLO's business inflection to depend on new
product roll-outs - a dynamic that could take longer to ramp,
given new management and changes to go to market motions
    ** 14 brokerages maintain a "buy" or higher rating on co, 15
rate it "hold" while three rate it "sell"; median PT at $67 -
LSEG data 
    ** TWLO stock down 29% YTD

 (Reporting by Purvi Agarwal in Bengaluru)
 ((Purvi.Agarwal@thomsonreuters.com))