By Dhirendra Tripathi
Investing.com – Zoom Video stock (NASDAQ:ZM) traded 3% higher Tuesday after Benchmark upgraded the stock to buy with a target of $124, still more than 26% higher than the prevailing $97.50 level.
Analyst Matthew Harrigan called the target “conservative,” according to StreetInsider.
The analyst sees a huge opportunity for Zoom as less than 20% of the Global 2000 are currently spending more than $100,000 annually with Zoom.
Zoom was arguably the biggest winner of the pandemic as individuals and corporates turned to its video conferencing app to connect and carry out both personal and official work. As the pandemic waned and more people returned to offices, the need for the services was felt less. The stock is now down nearly 73% in the last year against nearly 6% gains in the S&P 500.
The brokerage holds “high regard for management, especially CEO Eric Yuan” with the analyst saying the current price attaches nil credibility to Zoom realizing platform “happiness ambitions."
The analyst pointed out that the company is now deploying more people in non-U.S. markets to push sales while the renewals continue to be very strong, especially for large companies.