Seth Gilbert CFA, an analyst from UBS, maintained the Hold rating on Zoom Video Communications. The associated price target remains the same with $85.00.
Meet Samuel – Your Personal Investing Prophet
- Start a conversation with TipRanks’ trusted, data-backed investment intelligence
- Ask Samuel about stocks, your portfolio, or the market and get instant, personalized insights in seconds
Seth Gilbert CFA has given his Hold rating due to a combination of factors, balancing modest revenue upside with pressure on cash flow. Zoom delivered slightly better-than-expected revenue growth and guided to steady mid‑single‑digit expansion, helped by resilient enterprise performance and a planned price increase in its online business.
However, projected free cash flow for FY27 came in below prior expectations, reflecting incremental costs tied to data center investments, lower interest income, and shifting more compensation from stock to cash. At roughly 9x forecast FY27 free cash flow for a company growing revenue around 4%, he views the current valuation as fair, with limited downside but also constrained upside, supporting a neutral Hold stance rather than a more aggressive rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $92.00 price target.