Jefferies stated that Twilio still possesses room for growth as the adoption of artificial intelligence technology stacks continues to rise.

The investment firm upgraded the customer engagement platform's stock rating from "Hold" to "Buy." Concurrently, it raised the price target from $125 to $160, suggesting a potential 22% increase from last Thursday's closing price.

Analysts at Jefferies said in a report to clients on Sunday, "We are upgrading Twilio to 'Buy' due to increased confidence in the role Twilio is set to play within the voice AI technology stack."

They added, "Even a modest improvement in business appeal could serve as a sustained driver for its growth over the coming years and lead to performance exceeding market consensus expectations."