Barclays analyst Ryan MacWilliams reported that contacts indicate that Zoom Video (ZM) has sent e-mails to customers on its Zoom One Pro Plan that prices will be raised by $1 per month to $15.99 per month as of March 1, which the firm estimates as equivalent to about a 7% increase. The firm, which calls the price increase "interesting" given that Zoom added a number of features into its products for free last year, added that shorts have been "wary of companies that recently announced price increases," pointing to the recent outperformance of Atlassian (TEAM) as evidence. The firm, which views the price hike news as positive for Zoom, has an Equal Weight rating and $80 price target on Zoom shares.
Published first on TheFly
See today’s best-performing stocks on TipRanks >>
Read More on ZM:
- Zoom Video Communications call volume above normal and directionally bullish
- MKM Partners cuts Zoom Video to Neutral, sees limited upside in Meetings growth
- Zoom Video downgraded to Neutral from Buy at MKM Partners
- Zoom Video price target lowered to $75 from $77 at Piper Sandler
- Zoom Video management to meet with JMP Securities