Needham Upgrades Zoom Video (ZM) to Buy, PT $100

Needham analyst Joshua Reilly upgraded Zoom Video (NASDAQ: ZM) from Hold to Buy with a price target of $100.00.

The analyst comments "We are transferring Zoom Video (ZM) to Joshua Reilly, CFA, with a Buy rating and $100 price target. We believe the company is at an interesting inflection point where revenue headwinds from Online are easing, dilution from stock-based compensation has peaked and the share count can decrease with buybacks moving forward, and finally the pricing power of the business may be returning due to new embedded AI functionality as evidenced by the latest price increase for Online taking effect June 1st. Given all of these items, and roughly 33% of the company's market cap is in cash, we believe Zoom is well positioned for new products driven by AI to begin moving the needle on growth, while FCF per share is actually set to grow even with modest topline growth assumptions leading to our positive thesis for shares over the next 12 months."

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 $82.27 yesterday.

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