Zoom Video Communications (ZM) - Get Zoom Video Communications (ZM) Report shares rose Thursday after a flurry of analyst target-price rises and comments following the launch of its new products and features.
AllianceBernstein nearly tripled its share-price target on the San Jose, Calif., audio-video communications company to a Wall Street high $611 from $228.
“Total meeting minutes on Zoom have increased [about 30 times] over the last year," the New York investment bank said.
This is the highest target price from a leading firm, CNBC reported.
Shares of Zoom Video were up 3.7% to $527.93 at last check.
Zoom unveiled several new features yesterday, including a new platform for events.
The events platform OnZoom will enable users “to create and host free, paid, and fundraising events,” Zoom Video said in a statement.
“Hosts can grow their businesses, expand their reach into new audiences, and give back through native donation integration.”
Zoom Video also unveiled a product that ensures Zoom communications are encrypted using cryptographic keys known only to the devices of meeting participants.
Several other Wall Street analysts were positive on the company.
RBC Capital Markets affirmed its rating on Zoom Video at outperform and raised its price target by a third to $600 from $450.
After the investor event on Wednesday, the money manager said it had "increased conviction in the potential for durable hypergrowth, with a potential path to 60% growth next year.”
Both Rosenblatt Securities and Piper Sandler raised their share-price targets on Zoom, to $450 from $350 and to $501 from $411 respectively.
Zoom now hosts more than 3 trillion annualized meeting minutes, with more than 300 million daily meeting participants, the company said.
Morgan Stanley said positioning a marketplace with OnZoom “creates a pull-in for businesses to utilize Zoom as a virtual product-delivery channel,” which is a step in leveraging it as a platform.
The event highlighted the “leadership position gained as a result of Covid," Morgan Stanley said. The firm rates Zoom Video equal weight with a $350 price target.