Why Twilio Stock Climbed on Tuesday

Shares of Twilio (NYSE: TWLO) climbed today, up by 5% as of 11:30 p.m. EDT, after a Wall Street analyst raised his price target on the company. KeyBanc analyst Alex Kurtz ratcheted up his valuation estimate from $410 to $424 while reiterating an overweight (equivalent to buy) rating.

Kurtz suggests that demand for Twilio's offerings is booming amid "underlying reopening trends" as enterprise customers seek to engage with consumers, citing KeyBanc's proprietary Key First Look Data. Twilio's strategy with its customer data platform (CDP), Segment, which the communications technology company acquired less than a year ago, is still in the early innings but has considerable potential, in the analyst's view.

Image source: Twilio.

Source Fool.com