Citigroup analyst Tyler Radke raised the price target for Zoom Video Communications to $122. The previous price target was $106. The bank reaffirmed its Buy rating on the stock.
Radke identified a path for accelerating growth through Contact Center expansion and AI monetization. Web traffic for the platform returned to year-over-year growth. AI features are expected to increase conversion rates from free to paid users.
Zoom shares fell 1.3% in Friday premarket trading. Citigroup's revenue estimates for fiscal years 2027 and 2028 now exceed Wall Street consensus. These projections reflect confidence in the adoption of new AI tools and the Contact Center.