Street Calls of the Week
Investing.com - RBC Capital has reiterated an Outperform rating on Zoom Video (NASDAQ:ZM) with a price target of $100.00 following the firm’s attendance at Zoom’s Investor Q&A session during Zoomtopia 2025.
The investment firm reports that Zoom’s long-term margin targets remain unchanged at approximately 80% for gross margins and between 33% and 36% for operating margins, indicating consistent financial objectives for the company. The company is already demonstrating strong execution with current gross margins at 76.38%.
RBC Capital expressed continued bullishness on Zoom’s expanding product portfolio, while noting that the company’s Online segment is showing signs of stabilization, which could represent a positive development for the video communications platform.
The firm highlighted that indirect AI monetization remains a focus area for Zoom, with the company making encouraging announcements regarding its AI Companion 3.0 features during the Zoomtopia event.
International markets continue to represent a growth opportunity for Zoom, according to RBC Capital’s assessment of the information presented during the investor session.
In other recent news, Zoom Video’s recent Zoomtopia event has sparked several updates from analysts. Benchmark raised its price target for Zoom to $110 from $102, maintaining a Buy rating, following the unveiling of AI Companion 3.0, which introduces proactive contextual assistance. Mizuho reiterated an Outperform rating with a $100 price target, noting the stabilization of Zoom’s core business and its growing product diversification. Cantor Fitzgerald maintained a Neutral rating with an $87 price target, highlighting that Zoom’s revenue is diversifying as newer products like Phone and Contact Center contribute to growth. Stifel increased its price target to $90 from $80, keeping a Hold rating, and emphasized the importance of AI Companion 3.0 in Zoom’s strategy to accelerate top-line growth. KeyBanc, however, reiterated an Underweight rating with a $69 price target, noting Zoom’s efforts to transform its platform into a revenue-generating tool with new AI features. These developments are part of Zoom’s ongoing strategy to enhance its platform and broaden its revenue streams.
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