Shares of Twilio (NYSE:TWLO), a provider of cloud-based communication tools and services for developers, jumped sharply on Monday. As of 2:45 p.m. EDT, the stock was up nearly 11%.
The growth stock's jump higher was fueled by an analyst's move to significantly increase her 12-month price target for the stock.
Morgan Stanley analyst Meta Marshall set a $240 12-month price target for Twilio and reiterated an overweight rating for the stock. This price target is up from $160 previously. The company is better positioned than competition to benefit from enabling customized digital communications, she says. In addition, Marshall believes the second half of 2020 will be strong for the company.
Shares of Twilio have surged recently as investors bet that the company is benefiting from organizations' accelerated digital transformations as remote work, e-commerce, and mobile communication have become more integral to the economy than ever before amid social restrictions.
Twilio investors may want to check on the company's recent performance when it reports second-quarter results on August 4. Management guided for its second-quarter revenue to rise 33% to 35% year over year.