Needham Reiterates Buy Rating on Zoom Video (ZM)

Needham analyst Joshua Reilly reiterated a Buy rating and $100.00 price target on Zoom Video (NASDAQ: ZM).

The analyst commented: "Zoom reported a solid Q4 with a typical 1.2% revenue beat, and initiated FY27 revenue guidance with 4.1% revenue including a 40 bps headwind for the white label customer that churned at the end of Q4. Overall, this is consistent with our thesis that mid-single digit revenue growth is sustainable over the next few years. Near-term, FCF guidance is lower Y/Y due to some discrete items including higher cash taxes, incremental capex of $75mm, as well as interest income headwinds. We believe the wins discussed in the quarter confirm our recent channel checks that Zoom Phone continues to outpace UCaaS industry growth with strong adoption across SMB to enterprise. Additionally, we are encouraged with the re-acceleration in enterprise revenue including strength with $100K+ customers."

For an analyst ratings summary and ratings history on Zoom Video click here. For more ratings news on Zoom Video click here.

Shares of Zoom Video closed at $85.43 yesterday.

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