JPM upgrades Sinch post sell-off, shares jump

Sinch AB (publ)

24/05/2023 08:25

** Shares in Swedish cloud computing services provider Sinch
 SINCH.ST  rise more than 3% after J.P.Morgan upgrades the stock
to "overweight" from "neutral", saying a recent sell-off has
created an attractive re-entry point
    ** With shares down 55% from January highs, after FY and Q1
results, the brokerage sees Sinch's risk-reward as appealing
    ** It sees bullish read-across from peer Twilio's  TWLO.N 
recent commentary on CPaaS usage volumes stabilising and
industry pricing power holding up
    ** The brokerage also expects Sinch's Q2 result to
"reassure" investors, with growth inflecting back to positive 
    ** JPM also notes a growing appreciation of the CPaaS
industry as an AI beneficiary
    ** Out of 10 analysts that cover Sinch, five rate the stock
"strong buy" or "buy", four "hold" and one "sell"
    ** The stock is among top performers on the pan-European
STOXX 600 index  .STOXX 

 (Reporting by Greta Rosen Fondahn)
 ((Greta.RosenFondahn@thomsonreuters.com))