Morgan Stanley analyst Meta Marshall upgraded Twilio (TWLO) to Overweight from Equal Weight with a price target of $135, up from $130. The stock closed Wednesday up 23c to $112.55.

The company is building out a next-generation communication platform, with multiple expansion markets "still in their infancy," Marshall tells investors in a research note.

The analyst believes Twilio continues to remove the constraints of traditional business-to-consumer communication, and thinks the recent pullback in the shares provides an opportunity.

The company takes top placement in Marshall's newly introduced unified communications framework. The analyst coupled the upgrade of Twilio with a downgrade of Bandwidth (BAND) to Underweight.