Analyst Meta Marshall of Morgan Stanley maintained a Hold rating on Zoom Video Communications (ZM – Research Report), retaining the price target of $96.00.
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Meta Marshall has given his Hold rating due to a combination of factors surrounding Zoom Video Communications’ current financial outlook and market conditions. The company is expected to show a slight increase in quarterly revenue, mainly driven by its enterprise segment, although this is not anticipated to be a significant catalyst for a stock re-rating. The cautious revenue guidance for FY26 reflects a conservative stance, possibly influenced by the recent changes in CFO and foreign exchange headwinds.
However, Meta Marshall remains cautiously optimistic about Zoom’s prospects beyond the immediate quarter. The potential for growth re-acceleration and a solid financial position, including strong free cash flow and a robust balance sheet, support a constructive outlook for the future. Despite these positive elements, the current valuation and market conditions lead to maintaining a Hold rating for the stock.
In another report released yesterday, Citi also maintained a Hold rating on the stock with a $85.00 price target.