Zoom stock rating reiterated at Underweight by KeyBanc after Zoomtopia

Investing.com - KeyBanc maintained its Underweight rating and $69.00 price target on Zoom Video (NASDAQ:ZM), currently trading at $86.30, following the company’s annual Zoomtopia event and subsequent investor session. According to InvestingPro data, Zoom maintains impressive gross profit margins of 76.38% and appears undervalued based on Fair Value analysis.

The investment firm attended the virtual event where Zoom showcased its latest artificial intelligence capabilities, including AI Companion 3.0 and new features designed to transform the platform into a revenue-generating tool for users.

KeyBanc noted that much of the investor session focused on different market segment behaviors across Zoom’s business lines, with particular attention to performance metrics in various channels.

The firm expressed positive sentiment about Zoom’s progress in its online channel, specifically highlighting that the company has managed to improve growth in that segment to flat levels.

Despite acknowledging these technological advancements and business improvements, KeyBanc maintained its cautious stance on the stock with the unchanged Underweight rating and $69.00 price target.

In other recent news, Zoom Video reported its highest revenue growth in 11 quarters, with a 4.7% increase year-over-year, and its highest constant currency revenue growth rate in eight quarters at 4.4% year-over-year. This performance was highlighted by Mizuho, which raised its price target for Zoom to $100, maintaining an Outperform rating. Piper Sandler noted the company’s larger-than-expected quarterly results, driven by strength in the Commercial segment, and mentioned Zoom’s increased fiscal year 2026 guidance, albeit describing it as conservative.

Meanwhile, KeyBanc lowered its price target to $69, citing a mixed outlook despite positive developments in the Enterprise and Online segments. Citizens JMP reiterated a Market Perform rating, observing Zoom’s growth uptick from 3% to 5% between the first and second fiscal quarters. Zoom also introduced AI Companion 3.0, featuring agentic capabilities, at its Zoomtopia conference, aiming to enhance collaboration across its platform. These developments reflect Zoom’s ongoing efforts to accelerate growth and innovate in its offerings.

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