Why Zoom Video Shares Are Trading Higher Today

Zoom Video Communications Inc ZM is trading higher Thursday after Morgan Stanley upgraded the stock and raised its price target. 

Morgan Stanley analyst Meta Marshall upgraded Zoom Video from an Equal-Weight rating to an Overweight rating and raised the price target from $360 to $400.

Zoom Video's valuation is too negative given the catalysts ahead for the stock in the second half of 2021, Marshall said in a note. 

The Morgan Stanley analyst believes enterprise momentum and dissipating margin headwinds create a positive setup for the stock ahead of earnings. 

Zoom Video is set to announce its second-quarter fiscal 2022 financial results after the market closes on Aug. 30.

Zoom Video provides a communications platform that connects people through video, voice, chat and content sharing.

ZM Price Action: Zoom VIdeo has traded as high as $588.84 and as low as $273.20 over a 52-week period.

At last check Thursday, the stock was up 5.16% at $354.95.

Photo by Biljana Jovanovic from Pixabay.