Argus’ Stephen Biggar believes Twilio Inc TWLO shares are fully valued at present, trading at the top end of the peer-group range.
Biggar initiated coverage of the company with a Hold rating.
Losses Ahead
The analyst believes, following the strong run-up of the stock since its June IPO, Twilio is likely to see continued losses in the near term.
“Twilio’s cloud-based platform enables clients to embed messaging, voice, video, and authentication capabilities directly into their software applications,” Biggar mentioned.
The analyst expects the company to see opportunities for significant growth in the coming years given Twilio’s value in the digital economy.
However, the analyst also expects the company to report losses for several more quarters, while estimated 2016 adjusted loss of $0.26 per share on a 59 percent increase in total revenue.
Biggar expects the loss to narrow in 2017 to $0.12 per share on a further 50 percent increase in revenue.
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