Zoom Video Analysts Like Its Growth But Caution on Valuation
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Zoom Video Communications Inc. analysts started coverage on the company on Monday, and while there was unanimous optimism over its growth potential, a number of analysts also said this was already reflected in the surging stock.
Valuation was the key factor holding back some analysts from assigning buy ratings, although others were able to look past the issue. JPMorgan wrote that Zoom’s outlook “provides a foundation for growth and profitability at a scale not seen in software before.” The firm issued a Street-high price target of $113. But in a reflection of the company’s wide expectations, Goldman Sachs -- which wrote that Zoom’s growth prospects were “very attractive” -- has a target below $50.