Zoom (ZM): ‘Limited Risk Reward at These Levels’, MKM Partners Downgrade, Target Downgrade
Vlad Shepkov
Analysts at MKM Partners cut their rating on Zoom (NASDAQ:) from ‘buy’ to ‘neutral’ and cut their price target from $100 to $75, citing the negative impact on business from mounting macro pressures.
Analysts have previously modeled “post-pandemic normalized growth (10%), transition from online to enterprise growth, international expansion, and adjacent product growth,” in a recent note. emphasized.
However, the challenging macro environment is putting pressure on many areas of the company’s business. Most notably, “the saturation of the market for video pay seating and the lack of net new logo additions has limited the benefits of conferences.”
They also noted a slowdown in corporate growth, at 22.5% yoy in FY23 and 14.8% yoy in FY24, which they see as “very little upside for top-line growth over the short to medium term.” I’m here.
Analysts at MKM Partners therefore lowered their 2024 sales growth estimate to “4.5% y/y, down from the previous estimate of 6.7%,” with “limited risk rewards at this level.” I think. Lower your target price from $100 to $75.
Zoom shares closed yesterday at $69.51, up nearly 6.5% year-to-date.