Meta Marshall, an analyst from Morgan Stanley, maintained the Hold rating on Zoom Video Communications (ZM – Research Report). The associated price target remains the same with $72.00.
Meta Marshall has given his Hold rating due to a combination of factors including the near-term revenue catalysts and the competitive position of Zoom Video Communications. On one hand, the company is expected to see a modest uptick in revenues in the first quarter, driven by enterprise segment performance and easing renewal headwinds. However, this is balanced by ongoing challenges within the small and medium-sized business (SMB) sector and currency headwinds that are likely to persist.
Moreover, despite low investor expectations and a potential for revenue growth, the outlook for the full year remains unchanged, suggesting a cautious stance on the stock. Although there is an anticipated ramp-up from a new partnership in the second half of the year and optimism towards an inflection in net dollar expansion, the broader SMB environment remains challenging. This paints a picture of a company in a stable position with some positive aspects, but with significant uncertainties that justify a neutral, Hold rating.
According to TipRanks, Marshall is a 4-star analyst with an average return of 5.5% and a 55.79% success rate. Marshall covers the Technology sector, focusing on stocks such as Nutanix, RingCentral, and Zoom Video Communications.
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Zoom Video Communications (ZM) Company Description:
Founded in 2011, Zoom Video Communications, Inc. is a cloud-based peer-to-peer software platform that connects people through videotelephony and online chat services. Its video-first communications platform is used for teleconferencing, telecommuting, distance education, and social relations.
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