MKM Partners cuts Zoom Video to Neutral, sees limited upside in Meetings growth

MKM Partners analyst Catharine Trebnick downgraded Zoom Video to Neutral from Buy with a price target of $75, down from $100. The analyst states that her bullish thesis had been based on expectations of post-pandemic normalized growth of 10%, transition to enterprise growth from online, international expansion, and adjacent product growth in Phone, Chat, IQ, Contact Center, Rooms, Events, and Whiteboard products. Trebnick adds however that given the macro pressures on the Enterprise business, she sees limited upside on Meetings because of the market saturation of video-paid seats and low net new logo adds.