“We believe this is the set up that points to bottoming in growth and re-acceleration as we head through next fiscal year that underscored our recent upgrade,” Auty wrote.Īmong the non-bulls, Deutsche Bank’s Matthew Niknam reiterated his hold rating but cut his stock price target by 20% to $280, saying the company “zoomed to scale last year, but post-pandemic growth is a different story.”

While growth in customers with more than 10 employees in the latest quarter disappointed - Auty was expecting 518,785 customers - and the percentage of revenue from customers with less than 10 employees continued to decline were “issues,” he said there were still plenty of positives, including growth despite the tough year-over-year comparisons and the outlook for the Zoom Phone. Morgan’s Sterling Auty kept his rating at overweight, which he raised to overweight last month, and left his price target at $385, which implied more than 90% upside. However, he urged investors to “more heavily weight Zoom’s continued enterprise gains and consider Zoom’s de-risking by lower online segment expectations.” He continues to expect Zoom’s online business to decline as a percentage of total revenue given “post-pandemic normalcy” and greater enterprise penetration. Although he believes Zoom’s products will remain “integral” to hybrid work environments for the foreseeable future, “the company’s post-pandemic durable growth profile remains somewhat unclear.” Panigrahi said Zoom cleared “a lowered bar” with its results, amid strong enterprise and Zoom Phone growth, and a better-than-expected online business with improved churn. And customers with more than 10 employees made up 66% of total revenue, up from 64% last quarter and 63% the quarter before that.Īnalyst Siti Panigrahi at Mizuho slashed his stock price target to $300 from $350, but kept the buy rating he’s had on the stock for the past 13 months as his new price target still implied more than 50% upside potential from current levels.

31, up 18% from the same period a year ago, but that growth decelerated from 36% at the end of the second quarter and from 87% at the end of the first.

The company reported 512,000 customers with more than 10 employees at the end of the quarter to Oct. The issue for analysts and investors, however, was the customer additions, as well as uncertainty over growth expectations in a post-pandemic world.

Zoom video stock