Shares of Twilio gained 2% after the stock was upgraded to overweight from sector weight at Pacific Crest Securities Thursday. The analysts upgraded the company, saying they believe the core business of Twilio, which makes programmable cloud software for developers and enterprises and makes up 90% of revenue, is in a position to see continued steady growth. That growth could lead Twilio to profitability by the end of the year, they said. Additionally, they say a 55% stock drop in the fourth quarter of 2016 has created “an increasingly favorable risk/reward” for investors. They established a price target of $36. Shares of Twilio have fallen 10% in the past month, compared to the S&P 500’s gain of 3%.
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