The 12-month price decline is in excess of 12%. Nevertheless, most ZM asset projects for the next 5 years are bullish. On a 5-year horizon, the average price target represents the $150 level. The most optimistic scenario is an increase in capitalization of more than 5 times.
Proponents of this position point out that Zoom's strength is its good financial performance. First and foremost, annual earnings growth and a stable cash flow. The latter allows the corporation to invest in new developments and to acquire promising start-ups.
In addition, the services provided by Zoom have an advantage over the competition:
The bears pay attention to the weaknesses of ZM. First of all, the insufficient level of information protection. The most pessimistic forecast is the loss of more than half of the capitalization by 2028.
The experts at the Motley Fool believe that the likelihood of such a decline is very low. At the same time, however, they cite weak diversification and limited development opportunities.
The positive expectations for ZM quotes are based on the expansion of the corporate segment. In 2023, earnings growth in this segment will be 8%. In 2024, if Zoom has success in its plans, this parameter will reach double digits. We can also hope for the stabilization of the online segment, which will decline in 2023.
However, the forecasts are mostly moderate. And some analysts are even lowering their price targets. The reason is the slow development of the business.
Leading agency forecasts:
-
$60.00 — Wells Fargo & Company;
-
$65.00 — Stifel Nicolaus;
-
$77.00 — Citigroup;
-
$95.00 — Royal Bank of Canada.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
Total change, %
|
|
July
|
55.57
|
69.76
|
0.4
|
|
August
|
55.33
|
64.95
|
-2.0
|
|
September
|
52.66
|
61.82
|
-6.7
|
|
October
|
48.07
|
57.24
|
-14.8
|
|
November
|
52.25
|
61.70
|
-6.9
|
|
December
|
53.85
|
63.21
|
-4.6
|
In the last few years, the cost of Zoom has been in a sideways trend. Analysts expect that in 2025 the prices will leave the narrow corridor. However, forecasts about the direction of movement differ.
The bears' projection is a decline in value. Their argument is a weak business model. The bulls expect an expansion of services. They believe that ZM is poised to create video-based social networks. Another interesting direction is the addition of live translation scenarios.
Analyst price target for Zoom Video Communications 2025:
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
Total change, %
|
|
January
|
55.09
|
64.67
|
-2.4
|
|
February
|
59.88
|
74.37
|
12.3
|
|
March
|
65.60
|
77.00
|
16.2
|
|
April
|
66.00
|
77.48
|
17.0
|
|
May
|
66.27
|
77.79
|
17.4
|
|
June
|
71.18
|
83.56
|
26.1
|
|
July
|
71.73
|
84.21
|
27.1
|
|
August
|
74.78
|
87.78
|
32.5
|
|
September
|
76.73
|
90.07
|
36.0
|
|
October
|
76.94
|
90.32
|
36.3
|
|
November
|
79.79
|
93.67
|
41.4
|
|
December
|
86.73
|
103.73
|
56.6
|
Zoom's 2026 earnings could be nearly a third higher than 2023, according to Stock Analysis. EPS is expected to be in the range of $4.58-$6.25. In 2023, it was $2.07.
Such expectations make the stock's outlook favorable. The negative scenario is only maintained by one platform known for its bearish sentiment.
Price target at the end of 2026:
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
Total change, %
|
|
January
|
85.92
|
100.86
|
52.2
|
|
February
|
82.55
|
96.91
|
46.3
|
|
March
|
88.33
|
103.69
|
56.5
|
|
April
|
93.20
|
109.40
|
65.1
|
|
May
|
94.92
|
111.42
|
68.2
|
|
June
|
99.22
|
116.48
|
75.8
|
|
July
|
107.85
|
131.25
|
98.1
|
|
August
|
95.04
|
121.53
|
68.4
|
|
September
|
94.62
|
111.08
|
67.7
|
|
October
|
90.06
|
105.72
|
59.6
|
|
November
|
82.21
|
97.89
|
45.7
|
|
December
|
89.36
|
105.53
|
59.3
|
In 2027, the Stock Analysis Platform expects financial performance to deteriorate compared to 2026. Nevertheless, some services predict stable growth.
The main argument for the bulls is that the corporation's prospects are undervalued. ZM is investing heavily in AI development. And the decision to focus on enterprise customers will help increase their loyalty.
Price to achieve in 2027:
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
Total change, %
|
|
January
|
81.07
|
97.71
|
43.7
|
|
February
|
82.94
|
97.36
|
47.0
|
|
March
|
90.15
|
111.96
|
69.0
|
|
April
|
81.86
|
103.67
|
45.1
|
|
May
|
79.83
|
93.71
|
41.5
|
|
June
|
78.52
|
92.18
|
39.1
|
|
July
|
84.34
|
99.00
|
49.4
|
|
August
|
81.71
|
95.93
|
44.8
|
|
September
|
85.18
|
100.00
|
50.9
|
|
October
|
87.41
|
102.61
|
54.9
|
|
November
|
86.43
|
101.47
|
53.2
|
|
December
|
89.64
|
105.24
|
58.9
|
According to the bulls, Zoom's strength is its aggressive cost-cutting strategy. This compensates for the slow revenue growth. The stock's buyback program could also provide a boost. In addition, analysts expect important product innovations.
At the same time, there are also negative revenue forecasts. Bears point to the fierce competition in the industry. They believe that Zoom will lose demand.
Targeted to end 2028:
See the table below for the detailed forecast for each month.
|
Month
|
Minimum expected price, $
|
Maximum expected price, $
|
Total change, %
|
|
January
|
97.44
|
116.55
|
75.9
|
|
February
|
96.54
|
113.34
|
71.1
|
|
March
|
92.76
|
108.90
|
64.4
|
|
April
|
99.26
|
116.52
|
75.9
|
|
May
|
104.72
|
122.94
|
85.6
|
|
June
|
106.66
|
125.20
|
89.0
|
|
July
|
111.49
|
130.89
|
97.6
|
