Zoom Poised for Over 18% Upside: Jefferies Cites AI Potential and Business Expansion

Citing confidence around artificial intelligence and business growth prospects, Zoom Communications (NASDAQ:ZM) saw its shares gain 2.7% om Thursday after Jefferies upgraded the stock to “Buy,” from “Hold.” Key driver of Zoom’s future performance, Jefferies analyst Samad Samana underlined the possibility for AI-driven revenue expansion. Zoom may see significant revenue acceleration if 5% of the roughly 32 million paying seats embrace the AI add-on at an average of $7 per month by fiscal 2026, Samana said. Beyond communication and teamwork, the analyst also underlined Zoom’s increasing importance in business processes as a more general “system of action” wherein workers finish different everyday activities.

Samana argues that this development might reduce competitive risks and improve client retention as well as growth. Samana said fiscal 2026 estimates are “reasonable” and cited the company’s solid balance sheet as a potential to increase shareholder returns, raising his price target for Zoom from $85 to $100, which represents more than an 18% upside from current prices. The update shows growing investor trust in Zoom’s capacity to leverage enterprise technologies and artificial intelligence to support steady expansion.

This article first appeared on GuruFocus.