01:25 PM EDT, 05/21/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target price at $75, applying an EV/revenue multiple of 3.5x to our FY 25 (Jan.) estimate, a discount to its three-year historical average at 5.5x, reflecting our slow growth outlook and ongoing concerns over competition. We raise our FY 25 EPS estimate by $0.10 to $5.06 and increase FY 26's by $0.16 to $5.06. ZM reported Apr-Q operating EPS of $1.35 vs. $1.16, $0.16 above the consensus. Apr-Q revenue increased 3.2%, with 5% growth in enterprise revenue, 8% growth in customers contributing more than $100k in trailing 12-month revenue, and its trailing 12-month net dollar expansion rate for enterprise customers at 99%, which is a drop from 101% sequentially. Online monthly churn was 3.2% vs. 3.1%, due to ZM tightening up the grace period for unmade payments, which pulled some churn forward. While ZM is making progress winning a larger wallet share of existing enterprise customers, the pace of new customer additions has slowed and concerns us.