Analysts rate Zoom Video Communications Inc. (ZM:NSD) with a Buy, $197 Target

STA Research
by: STA Research
Zoom Video Communications Inc. stock

Analysts rate Zoom Video Communications Inc. with a consensus Buy rating and a 12-month average target price of $196.91 per share.

Benchmark upgraded  Zoom Video to Buy from Hold rating, and maintained  the $124 target price..

Wells Fargo maintained the Equal Weight rating, and lowered the target from $145 to $105.

Based on the Zoom Video Communications Inc. stock forecasts from 25 analysts, the average analyst target price for Zoom Video Communications Inc. is USD 196.91 over the next 12 months. Zoom Video Communications Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Zoom Video Communications Inc. is Slightly Bullish, which is based on 8 positive signals and 4 negative signals. At the last closing, Zoom Video Communications Inc.’s stock price was USD 98.97. Zoom Video Communications Inc.’s stock price has changed by -9.52% over the past week, -47.93% over the past month and -70.46% over the last year.

Zoom Video Communications, Inc. provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. The company was incorporated in 2011 and is headquartered in San Jose, California.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Revenue Growth

Compared to its sector, this stock has shown top quartile revenue growth in the previous 5 years.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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