Twilio's Average Brokerage Recommendation at 1.50, Suggesting a Strong Buy

Twilio (TWLO) has an average brokerage recommendation of 1.50, with 21 Strong Buy and two Buy ratings out of 28 recommendations. However, studies show that brokerage recommendations have little success in guiding investors to choose stocks with the most potential for price appreciation. Brokerage firms tend to have a vested interest in the stocks they cover, assigning more Strong Buy recommendations than Strong Sell recommendations. The best use of this information is to validate own research or use as an indicator for predicting stock price movement.