Zoom Video Faces Price Target Cuts After Downbeat Sales, Shares Tumble

Zoom Video Communications Inc ZM reported better-than-expected earnings for its second quarter, but sales missed expectations.

The company ended the quarter with 204,100 Enterprise customers, up 18% year-over-year.

Zoom shares fell 11.2% to $86.55 in pre-market trading.

Several analysts made changes to their price targets on Zoom Video following the release of results.

• Citigroup cut price target on Zoom Video from $91 to $76. Citigroup analyst Tyler Radke maintained Zoom Video with a Sell.
• Piper Sandler lowered Zoom Video price target from $115 to $91. Piper Sandler analyst James Fish maintained the stock with a Neutral rating.
• RBC Capital reduced Zoom Video’s price target from $150 to $130. RBC Capital analyst Rishi Jaluria maintained an Outperform rating on the stock.
• Goldman Sachs lowered price target on the stock from $142 to $122. Goldman Sachs analyst Kash Rangan maintained Zoom Video with a Neutral.
• Wells Fargo cut the price target on the stock from $105 to $95. However, Wells Fargo analyst Michael Turrin maintained Zoom Video with an Equal-Weight.
• Mizuho lowered Zoom Video’s price target from $190 to $120. However, Mizuho analyst Siti Panigrahi maintained a Buy rating on the stock.
• Benchmark reduced ZM’s price target from $128 to $118. Benchmark analyst Matthew Harrigan maintained the stock with a Buy