Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Stifel raised its price target on Zoom Video (NASDAQ:ZM) to $90.00 from $80.00 while maintaining a Hold rating following the company’s virtual Zoomtopia customer event and investor session on Wednesday. The company, currently trading at $86.30, has demonstrated robust financial health with impressive gross profit margins of 76.4% and a strong one-year return of over 30%.
The key announcement from the event was AI Companion 3.0, which adds several new agentic skills to the product. Zoom management emphasized that accelerating top-line growth remains the company’s top priority. According to InvestingPro analysis, the company’s focus on growth is supported by its strong financial position, with more cash than debt on its balance sheet and 25 analysts revising earnings estimates upward.
Stifel noted that Zoom continues to present compelling narratives around its AI monetization strategy and ZCX (Zoom Customer Experience), with the investor session demonstrating management’s confidence in realizing these visions.
Despite the positive developments in artificial intelligence capabilities, Stifel maintained its Hold rating on the stock while implementing the higher price target.
The price target increase represents a $10 upward revision from the firm’s previous $80 valuation of Zoom Video shares.
In other recent news, Zoom Video Communications reported its highest revenue growth in 11 quarters, achieving a 4.7% year-over-year increase in the fiscal second quarter. This growth was also reflected in its constant currency revenue, which grew by 4.4% year-over-year, marking the highest rate in eight quarters. Mizuho responded by raising its price target for Zoom to $100, maintaining an Outperform rating, citing the growth acceleration as a key factor. Meanwhile, Piper Sandler reiterated a Neutral rating with an $85 price target, noting mixed signals despite stronger-than-expected quarterly results driven by the Commercial segment. Zoom also adjusted its fiscal year 2026 guidance, which Piper Sandler described as conservative but indicating potential acceleration.
In addition, Zoom introduced AI Companion 3.0 at its annual Zoomtopia conference, showcasing new agentic AI capabilities aimed at enhancing collaboration. KeyBanc maintained an Underweight rating with a $69 price target, following the event and highlighting these AI advancements. Citizens JMP also maintained a Market Perform rating, pointing out Zoom’s growth increase from 3% to 5% between the first and second fiscal quarters. These developments underscore Zoom’s ongoing efforts to enhance its platform and accelerate growth.
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