Zoom Valuation Reaching 'Washed-Out Levels,' Over 30% Upside Despite M&A Caution
Portfolio Pulse from Surbhi Jain
Zoom Video Communications (NASDAQ:ZM) has seen a 15% decline in stock price over the past year and 13.6% this year, now trading at a forward P/E of 12.56, below the sector median. JPMorgan analyst Mark R. Murphy rates ZM as Neutral with a $83 price target, indicating a 33.69% upside. Despite post-pandemic growth slowdown, Zoom's expansion into new services and a strong market position suggest an undervalued stock with over 30% upside potential. However, potential M&A activity introduces uncertainty.
February 23, 2024 | 1:49 pm
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Zoom's stock has declined but is seen as undervalued with a potential 33.69% upside according to JPMorgan. Expansion and strong market position highlight growth potential, but M&A activity may introduce uncertainty.
Zoom's current valuation below sector median and JPMorgan's positive outlook suggest a strong upside potential. However, the stock's recent decline and the analyst's caution regarding potential M&A activity could introduce volatility. The company's expansion into new services and strong market position are key factors supporting growth potential.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100