NEW YORK (TheStreet) -- Shares of Twilio (TWLO) were rising 6.63% to $36.36 on heavy trading volume early Tuesday afternoon as Oppenheimer began covering the stock with an "outperform" rating and $50 price target.

Oppenheimer said that the San Francisco-based cloud communications provider will be able to "drive strong growth for the foreseeable future," adding that Twilio could be the "next $10 billion company."

The firm noted that Twilio will benefit from companies' "rapid" adoption of application-to-person communication, as well as growing usage of cloud-based platforms for application-to-person services.

Twilio also has an expanding total available market as the range of options for Communications Platform as a Service (CPaaS) increases, the firm added. Oppenheimer sees a $28.9 billion total available market by 2019.

The company "can continue to leverage a successful developer-focused land-and-expand sales model, penetrate traditional enterprises, and expand outside the U.S.," Oppenheimer noted.

Additionally, Twilio reports 2016 third quarter results after Thursday's market close. Analysts surveyed by FactSet are looking for the company to post an adjusted loss of 8 cents per share on revenue of $67.2 million.

Twilio went public in June. For the 2016 second quarter, the company reported an adjusted loss of 8 cents per share on revenue of $64.5 million.

More than 5.79 million shares of Twilio have traded hands by mid-day Tuesday, close to the 30-day average daily volume of 5.98 million.

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