Rosenblatt Securities Forecasts Strong Price Appreciation for Zoom Communications (NASDAQ:ZM) Stock

Key Points

• Rosenblatt Securities raised its price target on Zoom Communications from $115 to $130 and kept a buy rating, implying about 34% upside from the current share price.
• Zoom’s latest quarterly results beat expectations, with EPS of $1.55 versus $1.41 expected and revenue of $1.24 billion versus $1.22 billion forecast. The company also raised its outlook, citing stronger demand for AI features and enterprise usage.
• Analyst sentiment is improving broadly: several firms lifted targets or ratings after earnings, including Needham, BTIG, Mizuho, and Benchmark, while KeyCorp upgraded the stock to Sector Weight. Overall, the consensus remains Moderate Buy with an average price target of $104.20.

Zoom Communications (NASDAQ:ZM - Get Free Report) had its target price hoisted by research analysts at Rosenblatt Securities from $115.00 to $130.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Rosenblatt Securities' price objective points to a potential upside of 34.37% from the stock's current price.

Several other analysts have also recently commented on ZM. Cantor Fitzgerald reiterated a "neutral" rating on shares of Zoom Communications in a research report on Friday. Wall Street Zen cut Zoom Communications from a "buy" rating to a "hold" rating in a research report on Saturday, March 7th. KeyCorp upgraded Zoom Communications from an "underweight" rating to a "sector weight" rating in a research report on Friday. Benchmark boosted their price target on Zoom Communications from $115.00 to $121.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Robert W. Baird boosted their price target on Zoom Communications from $95.00 to $105.00 and gave the stock an "outperform" rating in a research report on Tuesday. Fourteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $104.20.

Zoom Communications Price Performance

Zoom Communications stock opened at $96.75 on Friday. The stock has a market capitalization of $28.51 billion, a PE ratio of 15.60, a price-to-earnings-growth ratio of 5.69 and a beta of 1.00. Zoom Communications has a 12 month low of $69.15 and a 12 month high of $111.56. The business has a 50 day simple moving average of $88.14 and a 200-day simple moving average of $86.59.

Zoom Communications (NASDAQ:ZM - Get Free Report) last posted its quarterly earnings data on Thursday, May 21st. The company reported $1.55 EPS for the quarter, beating analysts' consensus estimates of $1.41 by $0.14. Zoom Communications had a return on equity of 11.88% and a net margin of 39.03%.The business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the business earned $1.43 earnings per share. The business's revenue was up 5.5% compared to the same quarter last year. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, equities research analysts anticipate that Zoom Communications will post 3.94 EPS for the current fiscal year.

Insider Activity at Zoom Communications

In other Zoom Communications news, insider Velchamy Sankarlingam sold 7,645 shares of the business's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $85.44, for a total transaction of $653,188.80. Following the transaction, the insider owned 141,971 shares of the company's stock, valued at approximately $12,130,002.24. The trade was a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $81.32, for a total value of $690,325.48. Following the transaction, the chief financial officer directly owned 30,467 shares in the company, valued at $2,477,576.44. This trade represents a 21.79% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 144,329 shares of company stock valued at $12,364,989 in the last three months. Company insiders own 11.51% of the company's stock.

Hedge Funds Weigh In On Zoom Communications

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its stake in shares of Zoom Communications by 4.0% in the 4th quarter. Vanguard Group Inc. now owns 26,967,224 shares of the company's stock valued at $2,327,002,000 after purchasing an additional 1,029,623 shares during the last quarter. AQR Capital Management LLC lifted its stake in shares of Zoom Communications by 43.9% in the 4th quarter. AQR Capital Management LLC now owns 12,195,243 shares of the company's stock valued at $1,052,328,000 after purchasing an additional 3,718,186 shares during the last quarter. State Street Corp lifted its stake in shares of Zoom Communications by 5.0% in the 4th quarter. State Street Corp now owns 7,582,924 shares of the company's stock valued at $654,331,000 after purchasing an additional 363,776 shares during the last quarter. Norges Bank acquired a new position in shares of Zoom Communications in the 4th quarter valued at $509,788,000. Finally, Geode Capital Management LLC lifted its stake in shares of Zoom Communications by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 5,139,583 shares of the company's stock valued at $445,254,000 after purchasing an additional 152,862 shares during the last quarter. Institutional investors and hedge funds own 66.54% of the company's stock.

Key Zoom Communications News

Here are the key news stories impacting Zoom Communications this week:

• Positive Sentiment: Zoom beat Q1 earnings and revenue expectations, with EPS of $1.55 versus $1.41 expected and revenue of $1.24 billion versus $1.22 billion forecast, signaling continued operational strength.
• Positive Sentiment: The company raised its full-year outlook, with management pointing to stronger demand for AI features and enterprise usage, which suggests improving growth momentum. Reuters: Zoom raises annual forecasts, banks on AI features to drive demand
• Positive Sentiment: Several firms turned more constructive on the stock after earnings: Needham raised its target to $130 and reiterated Buy, BTIG lifted its target to $125 and Buy, Mizuho raised its target to $120 and Outperform, and Benchmark increased its target to $121 and Buy.
• Positive Sentiment: KeyCorp upgraded Zoom from Underweight to Sector Weight, adding to the improving analyst sentiment around the shares.
• Neutral Sentiment: Piper Sandler raised its price target to $107 but kept a Neutral rating, indicating limited near-term conviction despite the improved outlook.

About Zoom Communications

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company's platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom's product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.

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