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Twilio (TWLO) shares rose 3.5% to $96.47 Monday after an RBC Capital analyst reiterated his outperform rating on the technology and service company and his $125 share-price target.

Analyst Alex Zukin said in a note to investors that after hosting meetings with Andrew Zilli, the San Francisco company's vice president of investor relations, "we came away...with greater conviction in TWLO as the most attractively priced, durable high growth story in our coverage."

Zukin said management "suggested there has been no meaningful change nor underperformance on any business fundamentals in the third-quarter period, excluding the Billings issue."

"The company seems very positive on 2020, noting no macro or demand concerns, nor any changes in the competitive environment," Zukin wrote. "They noted analyzing weekly reports on communications volume, and seeing no declines in activity."

Zukin said he saw multiple growth catalysts from the company in 2020, including the coming elections, as well as Twilio's Sendgrid and Flex.

"In terms of the election, while guidance for next year will include some contribution, if all political campaigns were considered together and all used Twilio (both of which are very aggressive assumptions), it could be a 10% customer," Zukin wrote.

"Also, while the election impact in 2018 was primarily a second-half, and really a fourth-quarter, impact, the 2020 election could see a tailwind for every quarter."

Zukin added that the absence of political campaigning and advertising on Twitter (TWTR) could boost the dollars spent on messaging and SMS.

"The biggest growth catalyst in our view, on a longer-term basis, is the conversations application programming interface, which could dramatically increase messaging volumes across TWLO's customer base as today's notifications become tomorrow's conversations," Zukin wrote.

Twilio is a holding in Jim Cramer's Action Alerts PLUS charitable trust.