Financial services firm Cantor Fitzgerald has initiated coverage of Zoom and Slack, giving both an Overweight rating.
Zoom and Slack have been the darlings of the work from home era. Zoom is widely considered to have one of, if not the, best videoconferencing platforms that works equally well for large and small groups. Similarly, Slack is one of the most widely used chat platforms and has seen significant growth.
According to Barron’s, Cantor analyst Drew Kootman set price targets of $150 and $30 for Zoom and Slack, respectively.
“We believe the current Covid-19 environment presents significant upside potential not currently assumed in the stock,” Kootman wrote 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.”
The coverage should be a boost to both companies and further reaffirms their status as the pandemic changes how Americans work.