Citi analyst Tyler Radke sees the workforce reduction at Zoom Video Communications as an "incremental positive" but keeps a Sell rating on the shares with a $67 price target. The firm still sees downside risk to growth heading into 2023, with rising competition further slowing Enterprise growth and small business online revenue continuing to decline. Zoom’s shift toward profitability amid decelerating growth is logical given its growth rates are of a mature software company, the analyst tells investors in a research note.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on ZM:
- ZM Blasts Up on Layoff Plans
- Morgan Stanley not surprised by layoff as Zoom lagged peers in making such move
- Zoom Video Communications call volume above normal and directionally bullish
- Zoom Video CEO, executive leadership cutting salaries amid layoffs
- Zoom Video cuts 15% of staff, admits to making mistakes