In a report released on February 25, William Power from Robert W. Baird reiterated a Buy rating on Zoom Video Communications (ZM – Research Report), with a price target of $100.00.
William Power has given his Buy rating due to a combination of factors that highlight Zoom Video Communications’ potential for revenue improvement and value. The company reported strong fourth-quarter results, surpassing revenue and adjusted EPS estimates, and demonstrated solid free cash flow performance. Additionally, Zoom’s contact center traction, including its largest deal to date, and expanding AI capabilities are promising indicators of future growth.
Despite facing some foreign exchange headwinds, Power believes Zoom can achieve year-over-year revenue growth in fiscal 2026, which is central to his positive outlook. The stock is considered a value idea, trading at a favorable multiple of the free cash flow forecast. Furthermore, Zoom’s enterprise segment continues to show strength, and the company has a robust cash position, supported by significant stock buybacks, which contribute to the overall positive risk/reward profile.
According to TipRanks, Power is a 5-star analyst with an average return of 16.1% and a 56.54% success rate. Power covers the Technology sector, focusing on stocks such as Dynatrace, Palantir Technologies, and Akamai.
In another report released on February 25, Benchmark Co. also maintained a Buy rating on the stock with a $97.00 price target.