Needham analyst Joshua Reilly upgraded Zoom Communications (ZM) to Buy from Hold with a $100 price target as coverage was transferred. The firm believes the company is at an “interesting inflection point” where revenue headwinds from Online are easing, dilution from stock-based compensation has peaked and the share count can decrease with buybacks moving forward, the analyst tells investors. The pricing power of the business may be returning due to new embedded AI functionality, adds the analyst, who believes Zoom is “well positioned for new products driven by AI to begin moving the needle on growth.”
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