The days of post-pandemic normalization are over; Zoom Video Communications (NASDAQ: ZM) has reverted to sustainable growth. The company has sustained a low single-digit quarterly growth pace for nearly three years and is on track to maintain the pace in 2025 and beyond. The takeaway is that this positive cash flow tech company’s stock trades at a reasonable valuation in late 2024 with diminished headwinds and tailwinds building. Among the tailwinds are improving analysts' sentiment following years of downward pressure.
The analyst's response to the Q3 results is good. MarketBeat tracks 13 revisions that reverse the downward trend in place since 2022. The revisions include maintaining two above-consensus targets, an upgrade to Buy from Hold, and 11 price target increases. Only one of the revisions aligns with the consensus; the remainder is above it, implying a 5% to 25% upside for the stock from a critical support target net the 150-day EMA.
