Why Are Zoom Shares Trading Higher Today?

JPMorgan analyst Sterling Auty upgraded Zoom Video Communications Inc ZM to Overweight from Neutral with an unchanged price target of $385, implying a 40.1% upside.
The stock has fallen over 33% since December 9, 2020, as investors have factored in the growth slowdown post the pandemic tailwinds, Auty notes.
He believes Zoom's growth will bottom in Q4 and that the market has priced that into the current stock price, creating a "more attractive" risk/reward profile.
Auty expects Zoom to be the "other big winner" in the enterprise unified communications as a service market and Microsoft Corp MSFT Microsoft Teams.
Price Action: ZM shares traded higher by 2.99% at $283 in the premarket session on the last check Friday.