KeyBanc raised the firm's price target on Zoom Communications to $74 from $69 and keeps an Underweight rating on the shares. Both the enterprise and online segments delivered upside to estimates in a quarter that was broadly positive to end the year, the firm notes. Looking forward, some of the margin expansion seen in prior periods is expected to take a bit of a pause while investments in broadening out the product portfolio and go-to-market motion enter the expense base. Overall, shares have held up much better than KeyBanc's coverage, but with other SaaS names expecting better growth and expanding margins, the firm remains bearish on the name.
