Citizens JMP Maintains Hold Rating on Zoom Video Communications (ZM)

Citizens JMP reaffirmed their Hold rating on Zoom Video Communications (ZM) in a report released today. The company's shares closed at $74.60. Zoom Video Communications has a Moderate Buy consensus with a price target of $90.62. The company's market cap is $22.52B and has a P/E ratio of 22.40.

Citizens JMP analyst Patrick Walravens has maintained a Hold rating on Zoom Video Communications (ZM) stock, as reported in a recent research note. The company's shares closed at $74.60 on July 2, 2025. Zoom Video Communications has a Moderate Buy consensus with a price target of $90.62, according to analysts. The company's market cap stands at $22.52B, with a P/E ratio of 22.40.

In his report, Walravens noted mixed data points in his assessment of Zoom's video conferencing platform. On the positive side, Amazon's decision to shut down "Chime," its competing product to Zoom, opens potential market opportunities. Additionally, a top 20 bank renewed its Zoom contract, demonstrating continued enterprise-level commitment to the platform. However, Walravens also observed that a large public software company uses Microsoft Teams instead of Zoom because Teams is included in their Microsoft contract. Furthermore, Zoom has implemented automatic renewal for all plans purchased online, which could impact its churn rate.

Despite these mixed signals, Citizens JMP concluded that Zoom is fairly valued at its current price, trading at a calendar year 2026 estimated enterprise value to revenue multiple of 3.6x [1]. The company has also reported strong financial performance, with impressive gross margins of 76% and a "GREAT" financial health score, supported by robust cash flow metrics.

In other recent news, Zoom Communications, Inc. reported that its stockholders approved all proposals at the 2025 Annual Meeting, including the election of directors and the appointment of KPMG LLP as the independent auditor for the fiscal year ending January 31, 2026. The company has also expanded its Zoom Phone service to four additional telecom circles in India, now covering major business hubs such as Mumbai and Delhi NCR. This expansion aims to support distributed workforces and hybrid teams, reflecting the growing demand for cloud telephony solutions [2].

Benchmark has raised its price target for Zoom to $102, maintaining a Buy rating, following the company’s better-than-expected revenue performance in the first quarter of fiscal year 2026. Piper Sandler also increased its price target to $85, though it maintained a Neutral rating, citing traction in Zoom’s newer products like CX and AI Companion. Stifel, meanwhile, reiterated a Hold rating with a price target of $85, noting stable trends in Zoom’s Online and Enterprise segments despite extended sales cycles among large U.S. customers [2].

The analysts from these firms highlight Zoom’s innovative approaches and strategic initiatives as factors contributing to its financial performance. Despite the challenges, Zoom continues to demonstrate resilience and growth potential in the video conferencing market.

References:
[1] https://uk.investing.com/news/analyst-ratings/citizens-jmp-reiterates-market-perform-rating-on-zoom-video-stock-93CH-4174372
[2] https://www.gurufocus.com/news/2981567/zoom-video-communications-zm-sees-unusual-options-activity-zm-stock-news