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 that highlight both strengths and limitations in Zoom Video Communications’ current performance and future outlook. Zoom’s recent quarterly results demonstrated a stable core business with promising growth in areas like Zoom Phone, Customer Experience, and AI-driven solutions. The company has shown resilience with lower churn rates and solid adoption of new products, which suggests a compelling value proposition and limited downside risk.
Despite these positive indicators, Baer notes that the anticipated growth rate of approximately 4% is insufficient to significantly alter the investment narrative or justify a higher valuation multiple. While the company’s revenue and margins have exceeded expectations, the growth projections remain modest, preventing a re-rating of the stock. Consequently, Baer maintains a Hold rating with a price target increase to $92, reflecting a balanced view of Zoom’s potential and current market conditions.
In another report released today, Citi also maintained a Hold rating on the stock with a $94.00 price target.