Twilio Shares Could See Upside Of $15 Over The Next Year

Drexel Hamilton’s Brian J. White believes the sharp pullback in Twilio Inc TWLO shares since September suggests that the market is already discounting the expiration of the lock-up period.

White initiated coverage of the company with a Buy rating and price target of $45.

Pioneer Advantage

“Twilio is recognized as a pioneer in the rapidly growing cloud communications platform market with a following of over 1 million developers across 34,457 active customers,” the analyst mentioned.

White believes the company provides investors with the opportunity to invest in a disruptive, next generation cloud play expected to deliver the most rapid sales growth among its peers under Drexel Hamilton’s coverage universe in 2016.

“Unlike the SaaS industry that began to ramp with the founding of industry pioneers in the late 1990's, Twilio is a communications-focused PaaS vendor that believes we are in a new era of the cloud with a focus on delivering cloud platforms to customers,” the analyst went on to say.

Large Opportunity

White pointed out that Twilio was an early mover in the market for cloud communications platforms, a market that represents opportunity of $45.4 billion in 2017, according to IDC estimates.

The analyst estimates the company holds less than 1 percent share of this market, which represents a huge opportunity in the years to come.

At last check, shares of Twilio were up 2.54 percent at $29.89.