Zoom Video price target lowered to $78 from $90 at BofA

BofA lowered the firm’s price target on Zoom Video to $78 from $90 and keeps a Neutral rating on the shares. The firm applies a multiple against its updated calendar year 2025 estimates at a discount to the less than 20% growth software peer group, which it argues is warranted based on Zoom’s weaker visibility with regard to future growth trajectory and an increasingly competitive XCaaS environment. While the firm’s revenue estimates remain broadly unchanged, it increased its FY25 non-GAAP EPS estimate by 6% and lowered its FY25 free cash flow estimate by 6% to reflect guidance.