Shares of Twilio (NYSE:TWLO) rose about 2% premarket on Friday after Rosenblatt began coverage of the communication services provider with a Buy rating.
The firm has set a $140 price target on Twilio’s stock.
Analysts led by Catharine Trebnick said they were initiating coverage of Twilio with a Buy rating as they believe the company sits at a key inflection point where years of investment in market leadership are now set to translate into a durable model of profitable growth and significant free cash flow generation.
“The combination of a massive cross-selling opportunity, a dominant position as the communications backbone for the AI ecosystem, and a new commitment to substantial shareholder returns creates a compelling risk/reward profile at current levels,” said Trebnick and her team.