By Sam Boughedda
KeyBanc Capital Markets analysts resumed coverage of 15 names in the broader Infrastructure Software group associated with digital automation, collaboration, customer engagement, and related digital agencies on Tuesday, including Twilio (NYSE:) and Zoom (NASDAQ:).
Twilio was resumed with an Overweight rating and a $96 price target.
“Leveraging messaging platform leadership, particularly in the U.S., we view the Company as well positioned to capitalize on its engagement strategy, including selling an integrated customer data platform solution enabling better engagement and related ROI for customers and lifting company gross margins in the process,” said KeyBanc.
Zoom was resumed at Sector-Weight. The analysts said the rating is “driven by a weighted average EV/S approach, broken down by growth cohort (Enterprise ~6x, ~20% growth) and a lower assumption (~2x) for shrinking Online, in addition to our views on market saturation and need for execution expanding the platform.”
“We view Zoom as well positioned to gain share in phone with monetization and upsell from other products relatively untested. Further, successes in CCaaS could offer upside to multiples/growth and our view on shares,” they added.