Benzinga | Nov 19, 2021 10:42AM EST

UBS Cuts Zoom Price Target By 9.5% Fearing Competition

UBS analyst Karl Keirstead lowered the price target on Zoom Video Communications Inc (NASDAQ: ZM) to $285 from $315, implying a 9% upside, and kept a Neutral rating on the shares.

* Following discussions with some of the company's large enterprise customers, the analyst states that he is nervous about its up-market seat penetration and the prevalence of Microsoft Corp's (NASDAQ: MSFT) Teams in this segment ahead of Zoom's Q3 results next week.

* Zoom sees Q3 revenue of $1.015 billion - $1.02 billion, above the consensus of $1.01 billion.

* Zoom sees a Q3 Non-GAAP EPS of $1.07 - $1.08, below the consensus of $1.09.

* Price Action: ZM shares traded higher by 2.21% at $261.4 on the last check Friday.