Citizens JMP reiterates Market Perform rating on Zoom Video stock

Published 18/07/2025, 10:48
Citizens JMP reiterates Market Perform rating on Zoom Video stock

Investing.com - Citizens JMP analyst Patrick Walravens maintained a Market Perform rating on Zoom Video (NASDAQ:ZM) stock in a recent research note. According to InvestingPro data, Zoom maintains impressive gross margins of 76% and carries a "GREAT" financial health score, supported by strong cash flow metrics.

The firm cited mixed data points in its assessment of the video conferencing platform. On the positive side, Amazon (NASDAQ:AMZN) announced in February that it is shutting down "Chime," its competing product to Zoom, potentially opening market opportunities.

Another positive factor noted was that a top 20 bank renewed its Zoom contract, demonstrating continued enterprise-level commitment to the platform.

Counterbalancing these positives, Citizens JMP observed that a large public software company uses Microsoft (NASDAQ:MSFT) Teams instead of Zoom because Teams is included in their Microsoft contract. The firm also noted that Zoom has implemented automatic renewal for all plans purchased online.

Citizens JMP concluded that Zoom is fairly valued at its current price, trading at a calendar year 2026 estimated enterprise value to revenue multiple of 3.6x.

In other recent news, Zoom Communications, Inc. reported that its stockholders approved all proposals at the 2025 Annual Meeting, including the election of directors and the appointment of KPMG LLP as the independent auditor for the fiscal year ending January 31, 2026. The company has also expanded its Zoom Phone service to four additional telecom circles in India, now covering major business hubs such as Mumbai and Delhi NCR (NYSE:VYX). This expansion aims to support distributed workforces and hybrid teams, reflecting the growing demand for cloud telephony solutions. Benchmark has raised its price target for Zoom to $102, maintaining a Buy rating, following the company’s better-than-expected revenue performance in the first quarter of fiscal year 2026. Piper Sandler also increased its price target to $85, though it maintained a Neutral rating, citing traction in Zoom’s newer products like CX and AI Companion. Stifel, meanwhile, reiterated a Hold rating with a price target of $85, noting stable trends in Zoom’s Online and Enterprise segments despite extended sales cycles among large U.S. customers. The analysts from these firms highlight Zoom’s innovative approaches and strategic initiatives as factors contributing to its financial performance.

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