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Investing.com - Mizuho has reiterated an Outperform rating and $100.00 price target on Zoom Video (NASDAQ:ZM) following the company’s virtual Zoomtopia conference and investor presentation. According to InvestingPro data, the stock is currently trading at $86.30, with analyst targets ranging from $67 to $115, suggesting potential upside from current levels.
The research firm noted that while Zoom provided limited new financial disclosures during the event, management emphasized the stabilization of its core business and growing product diversification. The company’s financial health appears robust, with InvestingPro analysis showing impressive gross profit margins of 76.4% and a strong current ratio of 4.45x, indicating solid operational efficiency.
Zoom announced AI Companion 3.0 with new agentic AI innovations for Zoom Workplace and Zoom Business Services, with these capabilities scheduled to become generally available in November at no additional cost with paid services in Zoom Workplace accounts.
The company’s directly monetized AI initiatives, including Zoom Contact Center Elite, Zoom Virtual Agent, Zoom Revenue Accelerator, and custom industry solutions, are gaining traction according to Mizuho.
The firm maintains its view that Zoom is positioned to reaccelerate revenue growth in coming years, with mergers and acquisitions remaining a focus, and bases its $100 price target on 12x EV/NTM FCF compared to the current 10x multiple.
In other recent news, Zoom Video Communications unveiled AI Companion 3.0 during its annual Zoomtopia event, introducing new agentic capabilities aimed at enhancing collaboration across its platform. This development was highlighted as a key announcement, with the company emphasizing its focus on accelerating top-line growth. Analyst firms have weighed in on Zoom’s recent moves; Stifel raised its price target from $80 to $90, maintaining a Hold rating, while KeyBanc reiterated an Underweight rating with a $69 price target. Citizens JMP noted a growth uptick, observing Zoom’s increase from 3% growth in the first fiscal quarter to 5% in the second, driven by stabilization in its online business and a 7% growth in the Enterprise segment. Cantor Fitzgerald maintained a Neutral rating with an $87 price target, citing the broadening of Zoom’s monetization profile. These developments reflect Zoom’s ongoing efforts to innovate and expand its market presence.
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