RBC Capital analyst Rishi Jaluria raised the firm’s price target on Zoom Video to $95 from $85 and keeps an Outperform rating on the shares. The company’s 15% staff reduction announced yesterday was a "surprising and confusing move" as the company is one of the names where more growth than margin would appeal more to investors, the analyst tells investors in a research note. The firm adds however that there’s also a chance that this could be more of a re-prioritization, where Zoom uses the extra cash to accelerate investments in more strategic areas. RBC Capital still maintains however that the future of work will likely be hybrid, and Zoom should be a "critical component to enabling that hybrid future".
Published first on TheFly
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