Morgan Stanley analyst Cesar Medina has maintained their neutral stance on ZENV stock, giving a Hold rating on September 9.
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Cesar Medina has given his Hold rating due to a combination of factors impacting Zenvia’s financial performance. The company’s revenue growth was notable, particularly in the CPaaS and SaaS segments, with a 24% year-over-year increase. However, this growth came at the cost of declining margins, which fell to 3.8% compared to previous periods, primarily due to increased competition and a shift towards lower-margin CPaaS services.
Furthermore, while the Zenvia Customer Cloud segment showed promising growth, the overall client base saw a decrease, especially in CPaaS accounts. The company’s strategic initiatives, including potential divestments, remain uncertain, adding to the cautious outlook. These mixed results, combined with a significant net income loss driven by lower operating results, have led Cesar Medina to maintain a Hold rating as he seeks more clarity on future strategic directions.
In another report released on September 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.