Bond.az - BofA Securities raised its price target on Zoom Video Communications (NASDAQ:ZM) to $105 from $90 while maintaining a Neutral rating.
Zoom reported Q1 fiscal 2027 revenue of $1.24 billion, up 5.5% YoY, beating guidance. Enterprise revenue grew 7.2%, now 61% of total revenue, driven by large customers and multi-product adoption.
Non-GAAP operating margin expanded 130 bps to 41.1%, with gross margin improving to 79.9%. Free cash flow margin reached 40%.
BofA increased its valuation multiple to 13x CY2026 EV/FCF from 11x, reflecting improving revenue growth and cash generation.
Zoom boosted its share buyback program by $1 billion during the quarter.
