Zoom Video (ZM) Earnings/Guidance Should Bring Investors Back - Morgan Stanley

Morgan Stanley analyst Meta Marshall reiterated an Overweight rating and $165.00 price target on Zoom Video (NASDAQ: ZM) ahead of 4Q22 earnings on Monday, February 28th AMC. Investors have shied away from WFH winners but guidance for FY23 is expected to reset Street expectations, giving investors confidence to get involved.

The analyst stated "We remain OW ZM because we believe the market is fundamentally undervaluing ZM's growth potential as they leverage their installed base, instead dismissing it as a WFH winner. As we wrote earlier this week, we think ZM's continued underperformance ignores that the FQ2 print largely already got out the reversion in growth rates amongst SMB customers around return to work (ahead of many WFH beneficiaries). Secondly, ZM remains one of the more profitable software companies out there, trading around 30x 22e FCF. We believe FQ4 offers a catalyst (or eventual catalyst given software sentiment) to revive interest in ZM with FY23 guidance."

For an analyst ratings summary and ratings history on Zoom Video click here. For more ratings news on Zoom Video click here.

Shares of Zoom Video closed at $120.10 yesterday.

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