Piper Sandler Analyst Thinks This Cloud Software Stock Has More Upside Than Snowflake

Twilio Inc TWLO will likely become a much bigger business than what people are expecting, Piper Sandler analyst Brent Bracelin said Tuesday on CNBC's "TechCheck."

A lot of the cloud software stocks have high valuations, but there is opportunity in controversy and Twilio is one of the controversial names, Bracelin said. Twilio is currently mispriced, he said, adding that he expects Twilio to become the next $10 billion cloud asset.

"We think Twilio could actually become a $10 billion business before Snowflake Inc SNOW."

Snowflake currently has a market cap of about $100 billion, while Twilio's market cap is only $57 billion, Bracelin noted.

"We do think that this whole direct-to-consumer tailwind driving Twilio will continue to kind of make that a much bigger business than people are giving it credit for today."

The Piper Sandler analyst has an Overweight rating on Twilio and a price target of $550. Bracelin has an Overweight rating on Snowflake and a price target of $305.

See Also: Director Of Snowflake Trades $11M In Company Stock

TWLO Price Action: Twilio has traded as high as $457.30 and as low as $254.82 over a 52-week period.

The stock was up 1.27% at $324.79 at time of publication.

Photo: courtesy of Twilio.