In a report released yesterday, Tyler Radke from Citi maintained a Hold rating on Zoom Video Communications (ZM – Research Report), with a price target of $84.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Tyler Radke’s rating is based on a combination of factors that reflect both the opportunities and challenges faced by Zoom Video Communications. The company’s management has indicated that their goal to achieve a 100% net dollar retention rate is likely to be delayed, which suggests potential headwinds in maintaining customer loyalty and revenue growth. Additionally, while there is an expected increase in guidance due to an online price hike, the impact of foreign exchange fluctuations is primarily affecting their online business, which could pose risks to their revenue stability.
Furthermore, the company plans to keep research and development and marketing expenses steady as a percentage of revenue, indicating a cautious approach to spending. The anticipated seasonal growth in Q4 and the planned completion of a stock buyback by the end of FY26 are positive signals, but they are balanced by challenges such as sales elongations and migration-related revenue headwinds. These mixed factors contribute to the Hold rating, reflecting a neutral stance with a high-risk outlook and an expected share price return of 2.1%.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $85.00 price target.
ZM’s price has also changed slightly for the past six months – from $81.200 to $82.270, which is a 1.32% increase.
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue