UBS Cuts Zoom Price Target By 9.5% Fearing Competition

UBS analyst Karl Keirstead lowered the price target on Zoom Video Communications Inc ZM to $285 from $315, implying a 9% upside, and kept a Neutral rating on the shares.

• Following discussions with some of the company's large enterprise customers, the analyst states that he is nervous about its up-market seat penetration and the prevalence of Microsoft Corp's MSFT Teams in this segment ahead of Zoom's Q3 results next week.
• Zoom sees Q3 revenue of $1.015 billion - $1.02 billion, above the consensus of $1.01 billion.
• Zoom sees a Q3 Non-GAAP EPS of $1.07 - $1.08, below the consensus of $1.09.
• Price Action: ZM shares traded higher by 2.21% at $261.4 on the last check Friday.