Twilio (TWLO) traded higher Tuesday as investors reacted to a fresh bullish sell-side call published late Monday. Jefferies upgraded TWLO to Buy and raised its price target to $160, framing the move as a valuation reset tied to stronger cash generation and an expanding Voice AI monetization path. (m.investing.com)

Jefferies outlined a multi-year ramp in Twilio’s voice business, projecting total voice revenue of about $1.15 billion by 2028 with a meaningful contribution from Voice AI revenue. The thesis also leans on Twilio’s financial turn—highlighting 2025 free cash flow of about $945 million and expectations for additional improvement in 2026—supporting a higher multiple versus prior “communications utility” framing. (m.investing.com)

After the upgrade-driven bounce, traders will focus on whether Twilio can deliver sustained operating leverage while navigating industry pass-through items like carrier fees, and whether adoption of AI-powered voice workflows translates into measurable volume and margin expansion. Investors will also track share repurchases as a secondary support for EPS and per-share cash flow. (aol.com)