UPDATE: Piper Sandler Upgrades Zoom Video (ZM) to Overweight
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Piper Sandler analyst James Fish upgraded Zoom Video (NASDAQ: ZM) from Neutral to Overweight with a price target of $541.00 (from $501.00).
The analyst comments "Zoom reported a very strong end to FY21 and better than feared initial FY22 guidance, with Zoom Phone adoption and continued wins in Meetings both contributing to the upside. With the strong FQ4, FY22 guide setup, and multiple secular tailwinds behind the business, we are upgrading Zoom from Neutral to OW and increasing our PT to $541 (prior $501) and admit "better late, than never." Previously, valuation and the high exposure to commercial monthly-paying customers kept us on the sidelines. While the quarter itself did not answer the latter concern, the lead metrics suggest greater exposure to enterprise and annual/ multi-year customers ahead with a more digestible valuation given visibility. Our rationale for "why now" is outlined below, which includes Phone penetration, consolidation and new market entries, and underlying inputs & dynamics. The "party is not over in comm software" in 2021, and Zoom should be a beneficiary."
Shares of Zoom Video closed at $409.66 yesterday.
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