Zoom Video Communications, Inc. acquired a new culture, or for the believers, on Thursday, following the video-conference of the company’s first-quarter results came in far exceeded the expectations.
At least three analysts have turned bullish on the Zoom of the stock
following the report, which shows that the company is capitalizing on the rush-to-the-remote-working-in-the-eve-of-the-Covid-19 pandemic. The Shares have risen more than 6% Wednesday in midday trading.
Learn more: the Zoom, the Video, the profits and sales of blow out expectations, the stock rises towards other records
“We are upgrading our rating on the Zoom from neutral to buy after having reported this, which is without doubt one of the best areas of enterprise software history, led by the huge acceleration of growth, both in the quarter and for the FY21,” wrote D. A. Davidson, Rishi Jaluria. “It really is, without exaggerating [that] we can say that this is the most impressive financial results that we have never seen in the software, and probably one of the best in the history of enterprise software.”
Jaluria, he is stubborn that the Zoom can keep the momentum alive, even as the prohibitions aimed at curbing the spread of the viral outbreak ease and the staff will return to the physical offices.
Analysts cited optimism for the new use cases of Zoom-in-education, and telemedicine as a reason for optimism the prospects.
“While we certainly do not want to dismiss claimants claims with prejudice (the competitiveness of companies, particularly Microsoft and Google, we believe that the Zoom of the use of technology and the ease of use has created a high “gap”, he writes,” while raising its price target to $240 from$150.
Notice: the Zoom is impressive quarter and shows that it expects to be a force and a moment after, we can go back to the office
Jaluria has written that the Zoom is not the most expensive stock software” as its 33x multiple of enterprise value to estimated 2020 calendar year revenue, is lower than the Cut Software, Inc.
or, DataDog, Inc.
RBC Capital Markets-analyst Alex Zukin also sees new market opportunities in advance. The company has an installed base of 265,000 customers with 10 or more employees,” he said, leaving the videoconferencing company, with opportunities to cross-sell to its Zoom-Phone-and-Zoom Rooms the services.
“In short, we believe that the answer is yes, there is still money in the stock,” writes Zukin, who has upgraded the stock to outperform from sector perform and increased its price target to $250 from $125.
He said that the Zoom is implicit expects flat sequential revenue growth in the second half, but it is management’s assumptions appear to be conservative as the company expects an increase in the churn rate.” We believe that it is also one of the arguments that stack could actually improve in 2H given the Zoom technology can be even more important today than they were three months ago,” Zukin supported.
FBN Securities analyst Shebly Seyrafi upgraded the stock as well, to encourage the Zoom of the market and opportunities-arguing that the forecasts for the second half of the year looks conservative.
“There is a basket of stay-at-home stocks that have outperformed the market since the Covid-19 pandemic has begun, but we are of the opinion that HM is perhaps the most pure, the stay-at-home is out of stock,” writes Zukin, who raised his rating on the shares to outperform sector perform and increased its price target to $250 from $130.
Read: Welcome to the cabins? Long-time Silicon Valley ceo, says corona virus could kill the open office
For a While, more relaxation, or a time of restrictions could mean that more staff will be back at the office, in the months ahead, Seyrafi think that the Zoom will remain a valuable tool for businesses that many workers have learned to appreciate the flexibility for remote work. He also sees “several major billion-dollar industries, such as business, travel, and commercial real estate”, in which the Zoom lens can capitalize on.
As for the Zoom on the forecast, ” he acknowledged concerns about increased churn due to more of the value of contracts that have been signed recently, even though he has made the case that the Zoom can also be able to see better in the average revenue per user in the last six months, or by 2020 if there was more of a transition to annual sales.
Not all analysts were ready to jump on the bandwagon after the and the results. “In the future, the exposure to multiple levers of growth, new customer growth and use cases, up-selling, cross-selling, Room/ Phones, international expansion, etc). leaves us with a positive feeling,” writes Oppenheimer’s Ittai Kidron. “However, we recognise that we have probably missed a point-of-entry, at the beginning of this year, and the rest of the Perform on a pro rata basis on the assessment.”
Of the 31 analysts tracked by FactSet who cover the Zoom is out of stock, is 14 years old now, and the rate at buy, 12 rate to hold, and five rate the company’s sales, with an average price target of $197.52, below its Tuesday’s trading level of around us $221.
Zoom, the actions have been added, an increase of 57% over the last month, the S&P 500
has increased by 10%.