Analyst Mark Murphy of J.P. Morgan maintained a Hold rating on Zoom Video Communications, retaining the price target of $85.00.
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Mark Murphy has given his Hold rating due to a combination of factors influencing Zoom Video Communications’ current market position and future prospects. The company is transitioning from being primarily a video conferencing provider during the pandemic to an AI-driven work platform, which is a promising direction. However, while Zoom Phone’s growth to over 10 million paid seats is a positive development, the overall growth rate of the company has slowed post-pandemic as it adjusts to a new business environment.
Zoom’s recent announcements, such as the AI Companion 3.0 and expanded Custom AI Companion, indicate a strategic push towards integrating AI across its services. Despite these innovations, the company has not committed to a specific growth target, though it aspires to return to double-digit revenue growth. This cautious optimism, coupled with the need for continued execution and market expansion, supports the Hold rating as investors await clearer signs of sustained growth and market penetration.
According to TipRanks, Murphy is a 5-star analyst with an average return of 10.2% and a 58.27% success rate. Murphy covers the Technology sector, focusing on stocks such as Cloudflare, Datadog, and Workday.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $85.00 price target.