UPDATE: BofA Securities Reinstates Zoom Video (ZM) at Buy
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BofA Securities analyst Daniel Bartus reinstates coverage on Zoom Video (NASDAQ: ZM) with a Buy rating and a price target of $480.00.
The analyst comments "We reinstate coverage of Zoom with a Buy rating and $480 PO (based on roughly 30x our CY22E EV/Sales). In our view, Zoom’s superior video experience has solidified its position as the go-to meetings platform post-COVID. As the pandemic lingers and enterprises adopt more flexible workforces, we believe 2021 will be another good year for Zoom. Post-pandemic, we believe Zoom remains well-positioned as the new communications standard and the upsell of Zoom Phone, Rooms, and additional features across the 467k customer base offsets the churn risk across smaller customers. In our view, the current negative sentiment around reopening churn opens a particularly attractive buying opportunity and the valuation is more supportive with the stock trading at 20x our CY22 EV/Sales vs peers at 18-19x."
Shares of Zoom Video closed at $323.83 yesterday.
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