Twilio (TWLO) Stock Gets ‘Sector Weight’ Rating at Pacific Crest

Twilio (TWLO) stock coverage was started with a ‘sector weight’ rating at Pacific Crest and with a ‘hold’ rating at Canaccord Genuity on Monday morning.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Twilio (TWLO) - Get Report stock coverage was initiated with a "sector weight" rating at Pacific Crest Securities on Monday morning.

"While TWLO is ripe with potential, having large fast-growing customers and a large TAM, we are initiating at Sector Weight on valuation given shares have risen 187% since the IPO," the firm wrote in an analyst note.

The San Francisco-based company, which offers cloud communications platforms, went public in late June.

Its cloud communications software for developers has become "instrumental" in enabling some of the most prolific cloud services such as Airbnb, Uber, HubSpot, Zendesk, Lyft and WhatsApp, Pacific Crest noted.

Additionally, Twilio stock coverage was started with a "hold" rating and $40 price target at Canaccord Genuity this morning.

The firm said Twilio is a "best-in-class company," but the stock is quite expensive. Canaccord launched coverage with a "hold" rating in hopes of a pullback in shares.

"Twilio has a triple threat of fastest growth among publicly traded software companies, a technological lead, and solutions that ease a complex and acute pain point, embedded communications, which is seeing significant and accelerating demand," the firm wrote in a note.

Stock coverage was also initiated at JPMorgan and Goldman Sachs with a "neutral" rating, at JMP Securities with a "market perform" rating and with an "outperform" rating at William Blair.

Shares of Twilio are sliding 4.58% to $41.03 in pre-market trading on Monday.

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