Across the recent three months, 12 analysts have shared their insights on Zoom Communications ZM, expressing a variety of opinions spanning from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 0 | 9 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 2 | 0 | 5 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 0 | 2 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Zoom Communications, presenting an average target of $88.08, a high estimate of $100.00, and a low estimate of $75.00. This upward trend is apparent, with the current average reflecting a 1.35% increase from the previous average price target of $86.91.
Deciphering Analyst Ratings: An In-Depth Analysis
The analysis of recent analyst actions sheds light on the perception of Zoom Communications by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Allan Verkhovski | Scotiabank | Lowers | Sector Perform | $75.00 | $85.00 |
| Ryan Macwilliams | Barclays | Lowers | Equal-Weight | $80.00 | $85.00 |
| Karl Keirstead | UBS | Lowers | Neutral | $85.00 | $90.00 |
| Matthew Harrigan | Benchmark | Maintains | Buy | $97.00 | $97.00 |
| Thomas Blakey | Cantor Fitzgerald | Maintains | Neutral | $87.00 | $87.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $95.00 | $95.00 |
| Parker Lane | Stifel | Lowers | Hold | $85.00 | $90.00 |
| 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 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zoom Communications. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Zoom Communications compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Zoom Communications's stock. This examination reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Zoom Communications's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Zoom Communications analyst ratings.
All You Need to Know About Zoom Communications
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.
Zoom Communications: Delving into Financials
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Zoom Communications's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.29% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Zoom Communications's net margin is impressive, surpassing industry averages. With a net margin of 31.07%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Zoom Communications's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 4.18%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.4%, the company showcases effective utilization of assets.
Debt Management: Zoom Communications's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
How Are Analyst Ratings Determined?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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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