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- J.P. Morgan turns bullish on Zoom Video Communications (NASDAQ:ZM) on its view that the risk-reward profile is attractive after the growth slowdown has been factored in by investors with the 33% drop in share price since last December.
- Analyst Sterling Auty: "The entire UCaaS space has been rerated lower on these concerns and worries about Microsoft’s ability to capture share through Teams and Teams calling. We expect Zoom to be the other big winner in the enterprise UCaaS (video, phone, etc.) market and RingCentral in the mid-market."
- Zoom is seen being in a solid position to land large enterprise business looking to focus on UCaaS platforms that can bring together video, calling, contact center, CPaaS and chat/task management.
- Shares of Zoom Video (ZM) are up 2.37% premarket to $281.26.
- J.P. Morgan assigns a price target of $385 to ZM to rep 40% upside potential. The average analyst price target on ZM is $355.30.