Daiwa Capital Markets believes that Zoom Video shares can be bought at a good entry price due to the market selling-off. Stephen Bersey, an analyst who doubled the rating of the beloved stay-at home beneficiary, said that Zoom Video is now an ideal opportunity for investors to invest in the sector’s current pullback. The company’s core model is also something Bersey sees as a strength. Bersey stated that ZM shares should be repurchased by clients who have lower near-term growth expectations. We believe investors should concentrate on ZM’s core businesses as ZM’s value is heavily dependent upon its core business performance. Zoom shares have dropped 40% in the past year but Daiwa believes the stock will rebound. According to Daiwa, the firm increased its price target by $107 per share and now targets $121. This represents a 9.6% increase over Friday’s closing price. The company’s recent guidance and first quarter operating results are reasons to be optimistic. In addition, the company is making “good progress” with enterprise accounts, as the revenue increased 31% over last year, Bersey stated. According to Bersey, ZM’s shares currently trade at a PS multiple (or a 58.8% discount to the Internet Vendors average PS multiple) of 5.3x. — CNBC’s Michael Bloom contributed reporting
