Stifel Nicolaus analyst J. Parker Lane maintained a Hold rating on Zoom Video Communications (ZM – Research Report) yesterday and set a price target of $85.00.
J. Parker Lane’s rating is based on Zoom Video Communications’ recent financial performance and strategic developments. The company’s fourth-quarter results showed stability, with management indicating mixed macroeconomic trends that align with previous patterns. Zoom’s efforts in product development, such as the Zoom AI Companion, have helped maintain solid churn and retention rates in both the Enterprise and Online segments.
Despite these positive aspects, the analyst maintains a Hold rating due to the mixed macro trends and the company’s gradual growth trajectory. While emerging growth areas like the Contact Center and Workvivo are becoming more significant, and paid AI products are expected to contribute in the future, the growth outlook remains moderate. Consequently, the target price has been adjusted to $85, reflecting these considerations.
Parker Lane covers the Technology sector, focusing on stocks such as Salesforce, HubSpot, and SPS Commerce. According to TipRanks, Parker Lane has an average return of 1.8% and a 46.92% success rate on recommended stocks.
In another report released today, Bernstein also maintained a Hold rating on the stock with a $89.00 price target.
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