Zoom has become a verb in the work-from-home world of the coronavirus pandemic as millions of businesses and individuals have turned to the platform to communicate.
That was on plain display Monday when the San Jose company posted earnings and sales that handily beat analysts’ forecasts, and upped its guidance for the remainder of the year on what it expects to continue to be strong user demand.
That in turn sparked a slew of analyst upgrades on Tuesday, which in turn pushed Zoom’s stock price up by more than 35% at the market open.
Goldman Sachs analyst Heather Bellini led the pack, raising her recommendation on Zoom to neutral from sell and lifting her one-year price target to $402. BTIG analyst Matt VanVliet followed suit, upgrading Zoom to buy from neutral with a $500 price target, noting the company “reported another quarter from a different planet.”
Citi analyst Walter Pritchard took a more modest tack, raising his price target on Zoom to $377 from $217 and keeping his neutral rating on the shares.
Zoom has sought to address those concerns and others, and has continued to be the platform of choice, sespite significant competition from the likes of Microsoft (MSFT) – Get Report, Google (GOOGL) – Get Report, Facebook’s (FB) – Get Report WhatsApp and Ring Central (RNG) – Get Report.