Benzinga | Dec 30, 2021 07:05AM EST

Read What Makes Citic Securities Bullish On Zoom

* Citic Securities analyst Junyun Chen initiated coverage on Zoom Video Communications Inc (NASDAQ:ZM) with a Buy and a $260 price target. The price target implies a 43% upside.

* Zoom's stock price has fallen by two-thirds from its last October peak. The fall mainly reflects market concerns about declining revenue growth after the pandemic, the loss of small and medium-sized business customers, and competition from Microsoft Corp (NASDAQ:MSFT) Teams.

* However, current market concerns "are clearly excessive," and the stock is "oversold." Chen believes the global video conferencing market "maintains a high degree of prosperity."

* Zoom maintains a "solid leading position" despite competition from Teams and Cisco Systems Inc (NASDAQ: CSCO).

* Zoom provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting.

* Price Action: ZM shares closed lower by 1.07% at $181.81 on Wednesday.