More Bullish Attention on Twilio Ahead of Earnings

There's still a chance analysts could raise their price targets on TWLO shares

Cloud communications specialist Twilio Inc (NYSE:TWLO) has seen its stock outperform over the past year in a big way, rising from around $25 this time last year to Friday's close of $114.78, holding just below the Feb. 5 record high of $116.54. The company is preparing to report earnings after the close tomorrow, Feb. 12, and J.P. Morgan Securities just lifted its outlook on the security ahead of the event, moving its TWLO price target up to $125 from $84.

The firm may be taking note of TWLO's previous earnings reactions. The shares have soared at least 16.2% the day after earnings in each of the past four quarters, including a 35.4% explosion in November. This time around, the options market is pricing in an 18.1% swing for Wednesday's trading, regardless of direction.

More broadly speaking, the analyst community is exclusively bullish on the software concern. There are 15 brokerage firms in coverage, all of which sport a "buy" or better rating. On the other hand, another upbeat earnings report would almost certainly result in price-target hikes, since the current consensus 12-month price target is down at $103.08.

Meanwhile, short interest has been rising, up 6.4% in the last reporting period to 10.9 million shares, the most in nearly a year. This accounts for 15% of Twilio's float, suggesting there could also be room for a short squeeze to drive additional upside for the security.