Zendesk (ZEN): Thoughts From The Road - Piper Jaffray
- Wall Street falls as bank, healthcare shares weigh
- Qualcomm (QCOM) Faces U.S. Antitrust Case Over Licensing - Bloomberg
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Verizon Communications (VZ) May Acquire Big Cable Company - NYP (CHTR) (CMCSA)
- Citron Research Negative on Lannett (LCI); Sees Shares at 'Zero' Over Long Term
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Piper Jaffray analyst, Alex Zukin, reiterated his Overweight rating on shares of Zendesk (NYSE: ZEN) after taking the CEO, CFO & VP of Finance on the road to meet with investors. The analyst believes the company has strong visibility into its pipeline for the 2H16 and has taken a conservative approach with respect to guidance as visibility on the timing of enterprise deals is limited.
ZEN is looking to move more into the Enterprise which puts it in direct competition with CRM. Investors are concerned as they have seen firms in other markets attempt to take on CRM directly in the past only to see growth slow as deal cycles are elongated as CRM adjusts both its marketing and sales cannons on these companies. While the analyst shares these concerns, his thesis is that this is a very large market and ZEN has some meaningful competitive advantages that we believe are sustainable.
One dramatic data point that came out of the conversations is that 100% of Zen's leads today are inbound. Also, it appears the changes are having a positive impact as the sales organization has hit the ground running in July and the CRO is very excited about the energy in the sales org.
No change to the price target of $35.
Shares of Zendesk closed at $30.14 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Zendesk (ZEN) Falls as JMP Checks Suggest Q4 Bookings May Disappoint
- FBR Capital Remains Sidelined on Comerica (CMA) Following 4Q Report
- Mizuho Securities Raises Price Target on Noble Energy (NBL) to $48; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesPiper Jaffray
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!