Zoom Video Communications shares rebound on positive analyst outlook

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Zoom Intrinsic Value – Zoom Video Communications ($NASDAQ:ZM) shares remained near their breakeven point Thursday as MKM Partners analyst Catharine Trebnick started coverage of the video technology company with a buy rating due to several “key catalysts” in the months ahead. Trebnick said she expects Zoom to see growth speeding up due to new products such as Zoom Rooms, Zoom Contact Center and Zoom Chat. Trebnick said that selling such products to larger enterprise customers should help Zoom get back to year-over-year revenue growth of 20%, while the company previously forecast growth of 10.5% to 11% for its 2023 fiscal year. According to Trebnick, Zoom’s slower growth outlook has “created more attractive entry points for investors.”

Market Reaction

Many analysts believe that Zoom is well-positioned to capitalize on the growing demand for video conferencing and related services. As such, the stock is expected to continue to perform well in the future.

VI Analysis – Zoom Intrinsic Value

The company’s fundamentals reflect its long term potential, and the company is currently undervalued by the market. The fair value of Zoom Video Communications shares is around $446.6, calculated by VI Line. Now, Zoom Video Communications stock is traded at $109.52, undervalued by 75.48%.

Summary

Zoom Video Communications, Inc. ($NASDAQ:ZM) is a provider of video-first communications technology. Zoom’s shares have soared since the start of the pandemic, but have come under pressure in recent weeks on concerns about slowing growth and increased competition.

However, analysts at KeyBanc Capital Markets upgraded Zoom’s shares to “overweight” on Wednesday, citing the company’s strong market position and growth potential.