Zoom, Slack Stock Get Fresh Boost From Bullish Analyst Call

Category : Technology & Science | Sub Category : Technology Posted on 2020-04-15 06:53:18

The dynamic duo of cloud-based communications , Slack Technologies and Zoom Video Communications, received a boost Tuesday from Cantor Fitzgerald analyst Drew Kootman, who picked up coverage of both companies with Overweight ratings.

You could argue that Kootman is a little late to the party on Zoom (ticker: ZM), given that the stock had roughly doubled this year as of Monday’s close. He set a price target on the stock of $150, a level it visited as recently as March 30.

Kootman also argues there’s a case that Zoom will get a lasting boost from the current coronavirus-triggered shutdown of many offices around the world.

“We believe the current Covid-19 environment presents significant upside potential not currently assumed in the stock,” he writes in a research note. “Zoom provides a superior communication platform in a time where video and connectivity is becoming more important for all industries and business sizes. We expect the virus to provide upside to estimates and for the platform and its products to drive increased market penetration and future cross-selling opportunities. We expect these impacts to continue to drive multiple expansion.”

Zoom shares are up 4.8%, at $142.38, in recent trading. Slack is up 3.4%, at $25.81. The S&P 500 is up 2.8%