Meta Marshall, an analyst from Morgan Stanley, maintained the Hold rating on Zoom Video Communications. The associated price target remains the same with $85.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Meta Marshall’s rating is based on Zoom Video Communications’ ongoing efforts to expand its platform and the promising developments showcased at their user event, Zoomtopia. The company is making significant strides towards becoming a ‘system of action’ with the introduction of new features like the AI Companion 3.0. However, despite these advancements, Marshall maintains a Hold rating due to the expectation that a substantial acceleration in revenue growth is still some time away.
While Zoom’s progress in areas such as AI and its recognition in the Gartner Magic Quadrant for CCaaS are encouraging, the analyst remains cautious. The company has shown potential in the SMB/’solo-preneur’ sector, which presents a considerable opportunity given the large addressable market. Yet, the analyst seeks more concrete signs that these innovations will significantly impact growth before upgrading the rating. The current valuation and pace of innovation are positive, but more evidence of these factors driving higher growth is needed to change the outlook.