Wells upgrades Zoom Communications to Equal Weight on more balanced risk-reward

As previously reported, Wells Fargo upgraded Zoom Communications (ZM) to Equal Weight from Underweight with a price target of $85, up from $70. The firm now sees a more balanced risk-reward supported by capital allocation, in the form of share repurchase and potentially acquisitions, becoming a larger element of the debate; improving platform story, including opportunity to drive both retention and monetization with AI companion; and FY26 setup given the balance between new product contribution to top line growth and margin drawdowns.