Citi analyst Tyler Radke raised the firm’s price target on Zoom Video Communications to $67 from $66 and keeps a Neutral rating on the shares post the Q3 report. The quarter “offered something for everyone,” as a healthy revenue beat and very strong cash flow were offset by a weaker billings guide into Q4, the analyst tells investors in a research note. The firm thinks the quarter “offered a bit more confidence in a stabilization story,” with underlying growth remaining in the 2%-3% range and featuring improvement in online churn. However, Zoom’s greater investments in fiscal 2025 will likely to limit profitability growth, says Citi.
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