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Investing.com - Cantor Fitzgerald has reiterated its Neutral rating for Zoom Video (NASDAQ:ZM) with a price target of $87.00, according to a research note released Thursday. Currently trading at $86.30, InvestingPro analysis suggests the stock is undervalued, with analysts’ targets ranging from $67 to $115.
The firm noted that Zoom’s monetization profile is gradually broadening, with legacy meeting revenue stabilizing while newer products like Phone and Contact Center contribute an increasing share of growth.
Cantor Fitzgerald observed that the company’s commentary reinforced that reaccelerating top-line growth remains a top priority for Zoom, with early encouraging signs including enterprise uptick, SMB stabilization, and multi-product ARPU lift.
The research firm indicated that both management and investors are watching for evidence that Zoom can successfully convert its innovation pipeline, especially in artificial intelligence, into meaningful revenue streams in upcoming quarters.
Zoom Video has been working to diversify its product offerings beyond its core video conferencing platform that gained widespread adoption during the pandemic, as the company seeks new growth avenues in a more normalized business environment.
In other recent news, Zoom Video has reported notable developments following its annual Zoomtopia event. The company introduced AI Companion 3.0, which includes new agentic capabilities aimed at enhancing collaboration by converting conversations into actionable insights. Zoom’s fiscal second-quarter results were encouraging, with a 4.7% year-over-year revenue growth, marking the highest in 11 quarters, and a 4.4% growth rate in constant currency revenue, the highest in eight quarters. Mizuho responded by raising its price target for Zoom to $100, maintaining an Outperform rating, while Stifel increased its target to $90 with a Hold rating. Meanwhile, KeyBanc reiterated its Underweight rating with a $69 price target, despite the company’s efforts to transform its platform with AI features. Citizens JMP noted a growth uptick from 3% to 5% from the first to the second fiscal quarter, highlighting stabilization in the online business and a 7% growth in the Enterprise segment. These developments suggest that Zoom is focusing on accelerating its top-line growth through technological advancements and strategic initiatives.
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