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JPMorgan Lists 7 Reasons Why Twilio Is A Buy

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JPMorgan Lists 7 Reasons Why Twilio Is A Buy

Twilio Inc (NYSE: TWLO) shares are trading higher by 4.8 percent on Friday after the stock received a major vote of confidence from JPMorgan.

Analyst Mark Murphy upgraded the stock to Outperform and laid out seven things about Twilio the market seems to be underappreciating:

  • 1. After surging to $70 following its IPO, Twilio’s stock is now trades at only a slight valuation premium to its cloud peers at 4.7x EV/FTM.
  • 2. Twilio’s 12 consecutive quarters of at least 70 percent revenue growth is impressive even among other high-growth names.
  • 3. Amazon.com, Inc (NASDAQ: AMZN), which is invested in Twilio, is more of a partner than a competitor.
  • 4. Twilio’s massive total addressable market (TAM) of $46 billion is more legitimate than other companies’ TAMs because there is room for multiple providers in the space.
  • 5. Twilio is now past the 31 million-share lockup expiation in February, which likely weighed on share price.
  • 6. Twilio’s has cut its reliance on higher-risk variable revenue by 60 percent in just two years.
  • 7. Twilio’s services are more reliable than those of its competitors.

Related Link: Analyst: Amazon Connect Could Mean Trouble For Twilio

“Based on our customer due diligence, we believe that customers and developers recognize Twilio as a best-in-class toolbox for communications with a multi-year industry lead,” Murphy explains.

JPMorgan has a $36 price target for Twilio, which traded recently at $27.78.

Latest Ratings for TWLO

DateFirmActionFromTo
Jun 2020OppenheimerMaintainsOutperform
May 2020Canaccord GenuityAssumesBuy
May 2020NeedhamMaintainsBuy

View More Analyst Ratings for TWLO
View the Latest Analyst Ratings

 

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MERCRBC CapitalDowngrades9.0
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