Wedbush Raises Zoom's Price Target to $110 Amid AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: seekingalpha
- Price Target Increase: Wedbush Securities raised Zoom's price target from $95 to $110, reflecting increased analyst confidence in the company's AI strategy, projecting an 18x P/E multiple for 2027, indicating significant wallet share expansion potential among its enterprise customers.
- AI Product Growth: Analysts noted stronger spending trends for Zoom's AI Companion 3.0 compared to 2.0, with Zoom Phone achieving solid double-digit growth on an ARR basis, contributing to a total ARR growth of 9% year-over-year.
- Significant Investment Returns: Zoom's initial investment of $51 million in Anthropic has appreciated to between $1.6 billion and $4.4 billion, assuming a $350 billion valuation for the AI model creator, showcasing the effectiveness of the company's strategic positioning in AI.
- Valuation Discount: Despite a 10% rise in shares yesterday, Zoom trades at approximately 3.5x 2027 EV/Revenue, significantly below the software sector's 6x, indicating a market underestimation of its AI competitiveness, which analysts believe is a misjudgment.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like ZM with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on ZM
Wall Street analysts forecast ZM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZM is 99.33 USD with a low forecast of 85.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 96.220
Low
85.00
Averages
99.33
High
115.00
Current: 96.220
Low
85.00
Averages
99.33
High
115.00
About ZM
Zoom Communications, Inc. provides an artificial intelligence (AI) work platform for human connection. Zoom Workplace, the Company’s AI-powered, open collaboration platform built for modern work, enables us to streamline communications, increase employee engagement, optimize in-person time, improve productivity, and offer customer choice with third-party apps and integrations. Zoom Workplace, powered by Zoom AI Companion, includes collaboration solutions like meetings, team chat, phone, scheduler, whiteboard, spaces, Workvivo, and more. Its communication products include Zoom Meetings, Zoom Phone, Zoom Team Chat, Zoom scheduler, and Zoom mail and calendar. Its productivity products include Zoom Docs, Zoom Whiteboard, Zoom Clips, and Zoom Tasks. Its space products include Zoom Rooms, Zoom Workspace Reservation, and Zoom Visitor Management. It serves various industries, including education, financial services, government, retail, manufacturing and healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GE Vernova Reports Mixed Q4 Results Amid Analyst Recommendations
- Revenue Growth: GE Vernova reported fourth-quarter revenue of $10.956 billion, a 4% increase from $10.559 billion, exceeding analyst expectations of $10.213 billion, indicating stable growth in the market.
- Earnings Performance: Although the EPS of $2.79 fell short of the $3.18 estimate, the diluted GAAP EPS surged from $1.73 a year ago to $13.39, reflecting a significant improvement in the company's profitability.
- Analyst Recommendation: Bryn Talkington from Requisite Capital recommended buying GE Vernova, suggesting strong market confidence in its future performance, which may attract more investor interest in the stock.
- Strong UPS Results: UPS reported fourth-quarter revenue of $24.5 billion and operating profit of $2.6 billion; despite a 3.3% drop in stock price, its 6% dividend yield continues to attract investor interest.
Continue Reading
Zoom's Investment in Anthropic and Substantial Cash Reserves May Alter the Narrative
Investment Narrative Shift: Zoom Video Communications has evolved from being viewed primarily as a software utility to a deeper value holding company, particularly following its strategic investment in Anthropic, a leading AI firm, which positions it for growth in the AI sector.
Financial Positioning: As of January 2026, Zoom holds approximately $7.9 billion in cash, providing a strong financial cushion that mitigates risks associated with slower growth in its core business while allowing for strategic investments.
Market Valuation Insights: Analysts suggest that Zoom's stock is undervalued compared to its peers, with a market capitalization of around $27 billion, and the intrinsic value of its assets, including its stake in Anthropic, is not fully reflected in its current stock price.
Strategic Competitive Advantage: Zoom's partnership with Anthropic not only enhances its AI capabilities but also serves as a defensive strategy against competitors like Microsoft, allowing it to offer premium AI features without additional costs to its users, thereby increasing its market appeal.
Continue Reading