Zoom Video upgraded to Neutral from Sell at Citi

Citi analyst Tyler Radke upgraded Zoom Video Communications (ZM) to Neutral from Sell with an unchanged price target of $66. The analyst sees a more balanced risk/reward with the stock sitting below the target price and near “trough multiples.” Citi sees potential for near-term stabilization to play out with a conservative guidance that assumes macro deterioration and web traffic signaling some incremental improvement. However, Zoom still “faces significant risks, some arguably existential,” with looming Microsoft (MSFT) competition and lack of pricing and peaking margins/declining efficiency, the analyst tells investors in a research note.