Zendesk (ZEN) Management Meetings Highlight a Key Growth Catalyst - Cowen

Cowen analyst J. Derrick Wood reiterated an Outperform rating and $95.00 price target on Zendesk (NYSE: ZEN) after hosting investor meetings with Elena Gomez (CFO) and Marc Cabi (VP of Strategy/IR). Management carried a lot more clarity on what steps are needed to sharpen focus on internal execution, and we come away increasingly confident around the growth catalysts entering 2020.

The analyst stated "One key initiative that we think will drive better segment performance & sales productivity is the fact that ZEN has separated leadership responsibilities b/w its Enterprise and Velocity businesses. Regional sales leaders had historically managed both segments, but mgmt feels that because these businesses are so different with respect to go-to-market strategies, the structure was constraining resource attention across both groups. As such, ZEN is rolling out a new sales structure whereby newly hired Sharon Prosser (started in June 2019, previously having worked at AWS with ZEN's SVP of Global Sales, Norm Gennaro) is taking over as VP of Global Velocity (SMB) Sales".

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

Shares of Zendesk closed at $73.51 yesterday.

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