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Investing.com - Mizuho raised its price target on Zoom Video (NASDAQ:ZM) to $100.00 from $95.00 on Monday, while maintaining an Outperform rating on the stock. According to InvestingPro analysis, Zoom appears undervalued compared to its Fair Value, with 23 analysts recently revising their earnings estimates upward.
The firm cited Zoom’s encouraging fiscal second-quarter results, which showed the company’s highest reported revenue growth in 11 quarters at 4.7% year-over-year and its highest constant currency revenue growth rate in eight quarters at 4.4% year-over-year. The company maintains impressive gross margins of 76.4% and a strong financial position with a current ratio of 4.45.
Mizuho noted that Zoom’s fiscal year 2026 guidance implies top-line growth accelerating to approximately 3.5% year-over-year, driven by its Enterprise segment.
The firm believes Zoom’s revenue growth can reaccelerate to mid-single digits or higher, supported by opportunities in emerging products including CCaaS, Workvivo, and AI Companion, while the company’s more aggressive approach to share buybacks is viewed as positive. InvestingPro data confirms management’s aggressive share repurchase program, with the stock trading at an attractive PEG ratio of 0.58.
Zoom management will host a virtual investor Q&A session at its Zoomtopia event on September 17, 2025.
In other recent news, Zoom Video reported its strongest revenue growth in 11 quarters, with Q2 FY26 sales increasing by 4.7% year-over-year to $1.22 billion. The company’s pro forma earnings per share reached $1.53, surpassing market expectations. This performance was driven by growing enterprise demand, rapid AI adoption, and momentum in its Contact Center business. Piper Sandler reiterated a Neutral rating for Zoom Video, citing mixed signals despite the company raising its fiscal year 2026 guidance. KeyBanc lowered its price target to $69, maintaining an Underweight rating, but noted positive developments in the Enterprise and Online segments. Rosenblatt, in contrast, raised its price target to $110, maintaining a Buy rating due to the impressive quarterly results. Bernstein maintained a Market Perform rating with an $89 price target, acknowledging Zoom’s largest earnings beat in two years. Mizuho reiterated an Outperform rating with a $95 target, highlighting Zoom’s revenue growth and higher-than-expected operating margin. These developments reflect a mix of optimism and caution among analysts regarding Zoom Video’s future performance.
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