Citi opens ‘negative catalyst watch’ on Zoom Video shares

Citi opened a "90-day negative catalyst watch" on shares of Zoom Video Communications and keeps a Sell rating on the shares with a $68 price target. The analyst says negative data points are "piling up" which could further pressure the company’s growth rates. Citi’s recent chief investment office survey suggests an incremental de-prioritization of unified communications as a service spend and overall videoconferencing spending intentions "lacking growth," the analyst tells investors in a research note. Beyond the survey data points, Zoom may face other challenges including rising competition, and web traffic data trends also suggest continued deterioration post January, contends Citi.