Stephens Initiates a Buy Rating on Zoom Video Communications Inc Class A (ZM)

Stephens analyst Dmitry Netis initiated coverage with a Buy rating on Zoom Video Communications Inc Class A (ZMResearch Report) today and set a price target of $115. The company’s shares opened today at $92.90.

Netis wrote:

“We are initiating coverage of ZM with an Overweight/Vol. rating ($115 PT). We believe Zoom’s modern approach to video—which falls under the “third wave” of UCC transformation theme—is driving a fundamental change in the user consumption model. We further believe that continued share gains in the video/web collaboration market, new product launches (Zoom Phone/Zoom Rooms), growing penetration within enterprises, and international expansion provides a long runway for growth. Our proprietary sizing of key revenue opportunities yields an estimate of $2.9 billion in revenue by 2023 (55% five-year CAGR), of which, we estimate Phone would contribute a $1 billion in revenue on a combined basis. We expect Zoom to grow into its premium valuation as it becomes the global standard for enterprises.”

According to TipRanks.com, Netis is ranked #202 out of 5238 analysts.

The word on The Street in general, suggests a Hold analyst consensus rating for Zoom Video Communications Inc Class A with a $88.67 average price target.

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The company has a one-year high of $107.34 and a one-year low of $36. Currently, Zoom Video Communications Inc Class A has an average volume of 3.36M.

Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is negative on the stock.

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Zoom Video Communications, Inc. engages in the provision of video-first communications platform. It connects people through frictionless video, voice, chat and content sharing, and enable face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations.