UPDATE: Drexel Hamilton Starts Twilio (TWLO) at Buy

Drexel Hamilton initiated coverage on Twilio (NYSE: TWLO) with a Buy rating and a price target of $45. Analyst Brian J. White sees opportunity, and he thinks shares already discount lock-up expiration that begins this week.

"Twilio is an early mover in the cloud communications platform market that the company highlights as a $45.4 billion opportunity in 2017 based on estimates from IDC. Based on our 2017 revenue estimate, Twilio holds less than 1% share of this $45.4 billion market and thus we believe has a big opportunity ahead of it for years to come," said White.

"Currently, Twilio trades at an EV/revenue ratio of 6.3x our CY:17 sales forecast and well below the 9-22x EV/ NTM ratios (up to three years after an IPO) of high growth companies (seventeen companies we analyzed) of the past. Given the sharp decline in Twilio’s stock since September (down 59%), we believe the market has already discounted the lock-up expiration that begins this week," added the analyst.

For an analyst ratings summary and ratings history on Twilio click here. For more ratings news on Twilio click here.

Shares of Twilio closed at $29.25 yesterday.

You May Also Be Interested In

• Twilio (TWLO) PT Raised to $250 at Citizens Amid Challenging Software Backdrop
• MaxLinear (MXL) PT Raised to $120 at Stifel
• Intel (INTC) PT Lowered to $110 at Stifel, Hold Rating Maintained