Why Twilio Stock Is One Of Needham's Top Sector Picks

Following a recent pullback, Twilio Inc’s TWLO shares offer an attractive entry point, according to Needham.

The Twilio Analyst: Ryan Koontz initiated coverage of Twilio with a Buy rating and $430 price target.

The Twilio Thesis: The consensus revenue estimates for the company appear “easily achievable,” and the easing of pandemic restrictions is unlikely to slow global Communications Platform as a Service — CPaaS — adoption, Koontz said in the initiation note.

“Usage-based CPaaS revenue is poised to grow sustainably as digital communications use-cases expand and adoption accelerates in slow-mover industries, in our view,” the analyst said. 

“Despite an increasingly competitive landscape, we see TWLO's innovation and unique developer-focused go-to-market as strong differentiators capable of sustaining the company's market share,” he said.

Needham named Twilio as a top pick in the sector.

TWLO Price Action: Shares of Twilio were trading 4.46% higher at $379.32 at last check Tuesday. 

Photo courtesy of Twilio.