BTIG’s latest slate of Technology, Media & Telecom (TMT) recommendations highlights a concentrated set of companies the brokerage views as positioned to deliver above-market returns in 2026. The firm’s selections include both large-cap and SMID-cap names and place particular emphasis on businesses that can leverage product differentiation, pricing power, and evolving demand drivers such as GenAI, platform consolidation, and improving end markets.
Below is a company-by-company breakdown of BTIG’s top picks and the specific catalysts and recent corporate developments the analysts cited.
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Twilio, Inc. (TWLO) - Large-Cap Top Pick for 1H26; price target $165 (16% upside). BTIG points to Twilio’s business revamp, which has produced reaccelerating growth and margin improvement. The firm notes Twilio holds about 30% share in the CPaaS market, a market BTIG expects to reaccelerate in 2026. The brokerage also emphasizes Twilio’s positioning to monetize GenAI regardless of which application domains ultimately prevail.
Twilio’s most recent quarter showed fourth-quarter revenue of $1.37 billion and earnings per share of $1.33, results that topped analyst expectations. Following those results, Needham reiterated a Buy rating on the company.
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Klaviyo, Inc. (KVYO) - SMID-Cap Top Pick for 1H26; price target $40 (23% upside). BTIG frames Klaviyo as transitioning from an e-commerce marketing platform into an AI-enabled business-to-consumer CRM with broadened service offerings. Despite reaching roughly $1.2 billion in annualized revenue, Klaviyo is sustaining strong growth, with BTIG citing roughly 30% growth as evidence of continued scale expansion.
Klaviyo reported fourth-quarter revenue that grew nearly 30% year-over-year and that exceeded its guidance. In the wake of that report, multiple firms, including Benchmark, Cantor Fitzgerald, and Truist Securities, adjusted their price targets for the company.
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TKO Group Holdings, Inc. (TKO) - Large-Cap Top Pick; price target $250 (20% upside). BTIG highlights TKO as the leading global combat sports and entertainment platform, with control of brands such as UFC, WWE and IMG. The analysts point to the company’s captive and growing customer base, pricing power, and industry-leading margins as core strengths.
BTIG has increased its price target on TKO to $250, citing major media rights deals for UFC and WWE and an acceleration in partnerships revenue as key justifications for the higher valuation.
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Mercado Libre, Inc. (MELI) - Large-Cap Top Pick; price target $2,750 (36% upside). BTIG identifies Mercado Libre as a high-growth e-commerce platform that is achieving growth rates two to three times those of its home markets. The firm notes improved macro dynamics in Brazil, pointing to a recently approved middle-class tax cut and expectations for lower interest rates as tailwinds.
Moody’s upgraded Mercado Libre to an investment-grade rating, citing steady improvements in credit metrics and robust operational performance. JPMorgan has also upgraded the stock to Overweight, per the report.
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McGraw Hill, Inc. (MH) - SMID-Cap Top Pick; price target $22 (33% upside). BTIG points to industry-leading growth in McGraw Hill’s two largest segments, with Higher Education expanding 14% in the September quarter and the company gaining share in K-12 adoptions. The firm highlights the digital momentum and solid segment growth as drivers of the outlook.
McGraw Hill reported third-quarter revenue of $434 million, a 4.2% increase year-over-year, aided by an 11% increase in digital revenue. After the earnings report, BMO Capital lowered its price target on the company.
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Compass, Inc. (COMP) - price target $12.50 (18% upside). BTIG recommends Compass as the leading residential real estate brokerage poised to benefit from a multiyear housing recovery and continued share gains even before a sustained pickup in existing-home sales, according to the analysts.
Recent analyst activity around Compass includes JPMorgan initiating coverage with an Overweight rating and Needham adding the company to its Conviction List. Goldman Sachs reinstated coverage with a Neutral rating following Compass’s merger with Anywhere Real Estate.
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DraftKings, Inc. (DKNG) - Large-Cap Top Pick; price target $45 (31% upside). BTIG views DraftKings as well situated to benefit from favorable dynamics in prediction markets, improving iGaming growth, and a supportive regulatory environment in 2026.
Although DraftKings reported a fourth-quarter earnings beat, several analysts, including Stifel, Truist, and TD Cowen, lowered their price targets after the results, citing concerns about forward guidance and expansion-related costs.
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Unity Software, Inc. (U) - SMID-Cap Top Pick; price target $60 (36% upside). BTIG cites an improving mobile market outlook and key product evolution as central to Unity’s opportunity. The brokerage views mobile gaming as entering the early stages of a multi-year growth cycle, a trend that would support Unity’s longer-term prospects.
Unity reported fourth-quarter revenue of $503 million, beating expectations, but its guidance for the first quarter of 2026 fell short of consensus. Following the announcement, several firms, including Needham, Jefferies, and Barclays, reduced their price targets.
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Zscaler, Inc. (ZS) - Large-Cap Top Pick; price target $365 (62% upside). BTIG highlights Zscaler as the established leader in Zero Trust security. The firm expects Zscaler’s position to strengthen as enterprises prioritize platform consolidation and cloud-centric architectural shifts.
Zscaler unveiled a new AI Security Suite and appointed an executive to lead a new division devoted to agentic AI security. Barclays upgraded the stock to Overweight in connection with these developments.
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Netskope, Inc. (NTSK) - SMID-Cap Top Pick; price target $27 (54% upside). BTIG positions Netskope as a leading pure-play vendor in the Secure Service Edge market, with notable technical capabilities and improving financial leverage. The firm points to accelerating ARR growth and product innovation as positive indicators.
Netskope reported accelerating third-quarter annual recurring revenue growth of 34% year-over-year. The company also launched a data lineage solution designed to support AI governance, and firms including BMO Capital and Piper Sandler reiterated positive ratings in response to the results.
Collectively, BTIG’s selections emphasize companies with sustainable growth profiles, competitive moats in their respective niches, and the ability to capitalize on evolving technology and market dynamics throughout 2026. The list mixes names that are benefiting from improving end markets and monetization opportunities tied to AI, as well as companies experiencing product-led momentum or favorable contract developments.
Sectors and market impacts
These recommendations span multiple segments within the broader TMT complex:
- Communications platforms and CPaaS (Twilio)
- Digital commerce and CRM (Klaviyo, Mercado Libre)
- Media and entertainment rights and monetization (TKO)
- Education publishing and digital learning (McGraw Hill)
- Residential real estate brokerage platform exposure (Compass)
- Online sports betting and iGaming (DraftKings)
- Game engines and mobile gaming platforms (Unity)
- Cloud security and Zero Trust architectures (Zscaler, Netskope)
Analyst reactions and subsequent coverage
Several of the companies on BTIG’s list have seen contemporaneous analyst actions referenced by BTIG or other firms: Needham reiterated a Buy on Twilio after better-than-expected results; multiple firms adjusted price targets on Klaviyo after its quarter; BMO lowered its target on McGraw Hill following results; JPMorgan initiated Overweight on Compass and added coverage elsewhere; Moody’s moved Mercado Libre to investment-grade; and Barclays upgraded Zscaler to Overweight after product and organizational moves.
BTIG’s recommendations explicitly reflect an expectation that these companies can capitalize on both near-term operational momentum and structural opportunities in areas such as GenAI, cloud consolidation, and accelerating digital adoption.