Zoom Video Communications (ZM) - Get Zoom Video Communications (ZM) Report  shares on Friday zipped higher after Guggenheim analysts initiated coverage of the fast-growing videoconferencing company at buy.

The stock was trading up 4% at $72.70 a share after Guggenheim placed a price target of $90 on the San Jose, Calif., videoconferencing specialist.

That indicates a nearly 30% premium for the stock, which closed Thursday at $69.92.

Zoom's "unique business model [combines] low initial price and very rapid adoption, which makes for a very profitable financial model in the long run," Guggenheim noted in a report.

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After tumbling to $63.45 a share on Oct. 21 from a peak of $102.20 on July 22, Zoom's stock price is up 10% over the past month.

Zoom, which went public in April at $36 a share, is one of the four best performing IPOs of 2019, according to Zacks Investment Research.

Zoom, which is set to report third-quarter results on Dec. 5, reported major gains in its last quarterly report back in September.

The videoconferencing company reported a 78% jump in the number of customers using its services, tallying 66,300 customers with more than 10 employees.

Zoom reported a 96% leap in revenue, to $145.8 million, beating second-quarter analyst estimates of $130.3 million.

The company provides a "frictionless unified communications platform" to enable teams to communicate and collaborate, said Eric S. Yuan, founder and chief executive, in a statement on the second-quarter results.