Assessing Zoom Communications: Insights From 19 Financial Analysts

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Across the recent three months, 19 analysts have shared their insights on Zoom Communications ZM, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 3 11 1 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 2 0 0
3M Ago 4 3 8 1 0

Analysts have set 12-month price targets for Zoom Communications, revealing an average target of $90.89, a high estimate of $115.00, and a low estimate of $70.00. Observing a 17.61% increase, the current average has risen from the previous average price target of $77.28.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

The standing of Zoom Communications among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Tyler Radke Citigroup Lowers Neutral $85.00 $86.00
Thomas Blakey Cantor Fitzgerald Announces Neutral $87.00 -
Michael Turrin Wells Fargo Raises Equal-Weight $85.00 $70.00
Samad Samana Jefferies Raises Buy $100.00 $85.00
Meta Marshall Morgan Stanley Raises Equal-Weight $96.00 $86.00
Ryan Macwilliams Barclays Raises Equal-Weight $85.00 $70.00
Siti Panigrahi Mizuho Raises Outperform $105.00 $90.00
Catharine Trebnick Rosenblatt Raises Buy $95.00 $78.00
Matthew Harrigan Benchmark Raises Buy $97.00 $85.00
Peter Levine Evercore ISI Group Raises Outperform $115.00 $70.00
Peter Weed Bernstein Raises Market Perform $89.00 $78.00
Nikolay Beliov B of A Securities Raises Neutral $90.00 $75.00
Karl Keirstead UBS Raises Neutral $90.00 $75.00
Rishi Jaluria RBC Capital Maintains Outperform $95.00 $95.00
Kash Rangan Goldman Sachs Raises Neutral $86.00 $72.00
Parker Lane Stifel Raises Hold $90.00 $70.00
Michael Turrin Wells Fargo Raises Underweight $70.00 $60.00
James Fish Piper Sandler Raises Neutral $89.00 $68.00
Catharine Trebnick Rosenblatt Maintains Buy $78.00 $78.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zoom Communications. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zoom Communications compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Zoom Communications's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Zoom Communications's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Zoom Communications analyst ratings.

Get to Know Zoom Communications Better

Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.

A Deep Dive into Zoom Communications's Financials

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Zoom Communications's remarkable performance in 3 months is evident. As of 31 October, 2024, the company achieved an impressive revenue growth rate of 3.59%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Zoom Communications's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.58%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Zoom Communications's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.41%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Zoom Communications's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.95%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Zoom Communications's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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