Twilio Inc.’s stock slumped 1.9% in morning trade, after analysts started coverage of the recent IPO with less-than-upbeat ratings and stock price targets. Analyst Mark Murphy at J.P. Morgan said the cloud communications company was a category leader with strong growth prospects, but initiated Twilio with a neutral rating and stock price target of $39, which was 7.5% below current levels. Canacccord Genuity analyst Richard Davis started Twilio at hold and a $40 stock price target, which was 5.2% below current levels, saying that while Twilio was a “best-in-class” company in a fast-growing market, the stock is “quite expensive.” The stock, which went public on June 23, closed Friday at $43, which was nearly triple its IPO price of $15. Pacific Crest’s Brendan Barnicle initiated the stock at sector perform, with no stock price target. He said that while the company is “ripe with potential,” the stock has run up a bit fast since its IPO.
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