Morgan Stanley analyst Josh Baer maintained a Hold rating on Zoom Video Communications today and set a price target of $92.00.
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Josh Baer has given his Hold rating due to a combination of factors, including Zoom’s solid revenue performance but weaker profitability trajectory. He highlights that the company outpaced both its own guidance and market expectations on sales, with improving growth, particularly in enterprise contracts and newer products like Zoom Phone and ZCX, as well as a healthier backlog signaling sustained demand.
At the same time, he notes that cash flow and earnings fell short of expectations and that management’s outlook implies further pressure ahead from taxes, interest income, capital spending, and compensation mix shifts. With enterprise net dollar retention still below 100%, overall revenue guided to grow only modestly, and investor hopes around the Anthropic stake proving too optimistic, he sees limited upside to earnings and valuation, supporting a neutral, Hold stance.
Baer covers the Technology sector, focusing on stocks such as Commerce.com, Zoom Video Communications, and Lightspeed POS Inc. According to TipRanks, Baer has an average return of 2.8% and a 47.86% success rate on recommended stocks.