J.P. Morgan analyst Mark Murphy has maintained their neutral stance on ZM stock, giving a Hold rating on October 13.
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Mark Murphy’s rating is based on a combination of factors that reflect both the strengths and challenges facing Zoom Video Communications. The company has demonstrated ongoing stability and growth potential, particularly with its Zoom Phone and contact center solutions. These areas have shown traction and are expected to contribute to the company’s growth over time. However, despite these positive developments, the overall demand environment remains consistent, with some heightened cost scrutiny that could impact certain segments of the business.
Moreover, while Zoom has expressed ambitions for better growth in the future, it has not provided specific updates to its near- or long-term guidance. The company is optimistic about its Online business, which has a stable customer base, and anticipates growth in its Enterprise segment. However, the growth rate has slowed compared to the rapid expansion experienced during the pandemic. This combination of stable but moderated growth prospects, alongside the company’s strategic initiatives, underpins the Hold rating, suggesting that while there is potential, investors should remain cautious and consider other factors in their decision-making process.
ZM’s price has also changed slightly for the past six months – from $72.400 to $79.510, which is a 9.82% increase.