15 Analysts Have This To Say About Zoom Communications

During the last three months, 15 analysts shared their evaluations of Zoom Communications ZM, revealing diverse outlooks from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 2 8 0 0
Last 30D 1 0 0 0 0
1M Ago 1 1 2 0 0
2M Ago 1 1 1 0 0
3M Ago 2 0 5 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $85.2, along with a high estimate of $97.00 and a low estimate of $71.00. Observing a downward trend, the current average is 7.12% lower than the prior average price target of $91.73.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Zoom Communications is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Catharine Trebnick Rosenblatt Maintains Buy $90.00 $90.00
Catharine Trebnick Rosenblatt Lowers Buy $90.00 $95.00
Michael Turrin Wells Fargo Lowers Equal-Weight $75.00 $85.00
Meta Marshall Morgan Stanley Lowers Equal-Weight $73.00 $96.00
Siti Panigrahi Mizuho Lowers Outperform $71.00 $105.00
Rishi Jaluria RBC Capital Maintains Outperform $95.00 $95.00
Catharine Trebnick Rosenblatt Maintains Buy $95.00 $95.00
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

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zoom Communications. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zoom Communications compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Zoom Communications's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Zoom Communications's market position. Stay informed and make well-judged decisions with the assistance of 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: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Zoom Communications's remarkable performance in 3M is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 3.29%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Zoom Communications's net margin excels beyond industry benchmarks, reaching 31.07%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Zoom Communications's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.18%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Zoom Communications's ROA excels beyond industry benchmarks, reaching 3.4%. This signifies efficient management of assets and strong financial health.

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.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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

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