ZM Stock: $400 Price Target By Morgan Stanley

By Amit Chowdhry ● Aug 26, 2021
  • The shares of Zoom Video Communications Inc (NASDAQ: ZM) have received a price target of $400 by Morgan Stanley. These are the details.

The shares of Zoom Video Communications Inc (NASDAQ: ZM) have received a price target increase from $360 to $400 by Morgan Stanley. The price target was assigned shortly before Zoom Video is expected to report its results after the market close on Monday, August 30.

And Morgan Stanley analyst Meta Marshall upgraded Zoom Video to “Overweight” from “Equal Weight.”  

Marshall believes that Zoom’s stock valuation has turned too negative on the near-term churn concerns ahead of the catalysts in the second half of this year. Plus he believes there is a positive set up into Zoom’s second quarter results.

Going forward, Marshall believes there is enterprise momentum, combined with margin headwinds dissipating thus creating a positive setup into Zoom’s second quarter results. 

Marshall noted that the revenue expectations are doable. And when combined with the upcoming Zoomtopia conference and the fiscal 2023 guidance in a couple of quarters, then a more optimistic stance on the stock at the current valuation is warranted.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.