Street Calls of the Week
Investing.com - Benchmark raised its price target on Zoom Video (NASDAQ:ZM) to $110.00 from $102.00 on Thursday, while maintaining a Buy rating on the stock. The new target aligns with broader analyst sentiment, as 25 analysts have recently revised their earnings estimates upward according to InvestingPro data.
The price target increase follows Zoom’s Zoomtopia presentations on Wednesday, where the company unveiled AI Companion 3.0, the latest upgrade to its collaboration platform that shifts from passive AI to more proactive contextual assistance.
Benchmark’s decision reflects "product momentum, especially Zoom Phone and gradual agentic AI monetization inroads" detailed during the event, according to the firm’s research note.
CEO Eric Yuan emphasized providing a unified platform where AI functions as an intelligent layer across communication and business tools, including third-party integrations.
Key features of the new AI Companion 3.0 include cross-platform note taking and agentic retrieval capabilities that work not only within Zoom but also with competing platforms Google Meet and Microsoft Teams.
In other recent news, Zoom Video’s financial performance and strategic initiatives have garnered attention from several analyst firms. While Zoom provided limited new financial disclosures during its Zoomtopia conference, the company emphasized the stabilization of its core business and product diversification. Mizuho maintained an Outperform rating for Zoom, highlighting the company’s AI innovations and setting a price target of $100. Stifel increased its price target for Zoom to $90, citing the introduction of AI Companion 3.0, which adds new capabilities to the platform. Meanwhile, Cantor Fitzgerald reiterated a Neutral rating with an $87 price target, noting the broadening monetization profile of Zoom’s newer products like Phone and Contact Center. KeyBanc maintained an Underweight rating and a $69 price target, focusing on Zoom’s latest AI features aimed at transforming the platform. Citizens JMP observed signs of growth, with Zoom’s growth rate increasing from 3% in the first fiscal quarter to 5% in the second, driven by improvements in the online business and Enterprise segment growth. These developments reflect the company’s ongoing efforts to enhance its product offerings and stabilize its revenue streams.
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