Zoom Video Communications Inc’s ZM stock has recently been under pressure due to the pullback in the software segment and expectations of a slowdown in the company’s growth post-COVID-19 pandemic, according to MKM Partners.
The Zoom Video Communications Analyst: Catharine Trebnick initiated coverage of Zoom with a Buy rating and a price target of $135.
The Zoom Video Communications Thesis: While the company faces tough comps coming out of the pandemic, there are several key catalysts that could drive growth back to 20%, Trebnick said in the initiation note published Thursday.
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The analyst said she believes Zoom’s fiscal 2023 guidance is conservative, with “strong execution on product expansion (Zoom Rooms, Zoom Contact Center, Zoom Chat) and upselling into its Enterprise segment customers” likely to re-accelerate growth.
The downturn in the stock has created “more attractive entry points for investors,” she added.
ZM Price Action: Shares of Zoom Video Communications had declined by 0.22% to $112.61 at the time of publication Friday.
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