Friday, July 1

Zoom: death in post-pandemic lows or buying opportunity?

Zoom Vid Commu Rg-A It is one of those iconic companies that rose to prominence on Wall Street. The breeding ground, confinements in many parts of the world and above all, the generalization of compulsory teleworking, that with the reduction to zero in personal contact and trips to the office made this service essential.

Hence advances of more than 500% will be marked at the height of the coronavirus scourge, as happened with other companies, ideal for that moment of the global pandemic crisis. We have seen it in pharmaceuticals, in streaming platforms and other more than favored sectors, especially the technological ones related to online games.

But his case, like that of the sports equipment company Peloton for example, is very particular.We are talking about companies that have seen their new market niche after the spectacular rebound, and without changing your business model as necessary and adapting to circumstances, they see how the return to the offices and even the negative comments about the fact of spending hours in front of a screen with endless videoconferences, have ended up damaging their bottom line.

And it is precisely in those moments of this 2021, after the presentation of results, their worst records have arrived. It is enough to remember the last blow suffered, of 14.71% on November 23 after confessing in the market, warning from the company about the slowdown in its income. The rest, a continuous bleeding until this week marked its lowest level at $ 175.27 per share in the last 52 weeks, less than half its levels from last February when it peaked at $ 451.77.

In his stock chart we see how the red numbers give force to these statements: 15.1% drops in the last five sessions that even reached 20.5% in the previous month. In the quarter, cuts exceeded 37.7% with annual falls of 45% for Zoom.Since December of last year, the cuts have risen above 54.4%.

Annual stock price zoom

And that gradual decline, from the end of November, has been produced after the outpouring of the analysis firms that have reduced, in a generalized way, the recommendations on the value. As shown, the discount of Wells Fargo up to $ 245 in your PO, the 275 dollars from 300 of Stifel, Mizuho, ​​â € ‹â €‹ in the 300 dollars, Deutsche Bank cut to 280, Bank of America at $ 270 per share or the 250, from the 304 previous that Citigroup marked as a target price are some of these examples.

But it is also true that except in the case of BofA, which underweight the value, the rest choose to keep it in their portfolio, with potentials ranging from 27 to 62% of upward travel that they give to the value at current prices.A full-blown buying opportunity. In Tipranks they collect a moderate purchase with 25 analysts who comment on the value. Of them, 12 bet to buy, 12 to hold and one to sell with an average target price of $ 305 per share, with potential that exceeds 64%.

Zoom recommendations on the value

In this field of opportunity to enter the value is placed Morgan Stanley analyst Meta Marshall that he sees how the company’s execution is consistent with its strategy, exceeding the low expectations about its third-quarter results. Endorse your purchase advice on the value, with a target price of 365 dollars and potential that exceeds 76% for its journey on the stock market.

If you want to know the most bullish values ​​of the stock market, depend free on Investment Strategies.

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