Wedbush increased its price objective for Zoom Video Communications Inc. to $110.00 from $95.00 and maintained an Outperform recommendation on the stock, the firm said in a recent note. Zoom shares were trading at $95.46 at the time of the update, a level that reflects a 17.39% gain over the prior week and sits just below the stock’s 52-week high of $95.83.
The new target is underpinned by an 18x 2027 price-to-earnings multiple, with Wedbush signaling greater conviction in Zoom’s AI strategy and its ability to capture more wallet share within its enterprise customer base. Reporting data shows the company currently trades at a P/E of 18.53 and a PEG ratio of 0.25, figures cited from InvestingPro that suggest a market valuation that may be modest relative to Zoom’s growth outlook.
Wedbush’s checks indicate that customers are increasing spend on Zoom’s AI offerings, including AI Companion 3.0. Zoom Phone was highlighted for strong performance, registering solid double-digit growth measured on an annual recurring revenue, or ARR, basis. Those contributions helped drive overall ARR up 9% year-over-year, according to the firm’s note.
The analyst also pointed to a broader uplift across product verticals that had been sluggish previously. In particular, Zoom’s Contact Center solution is now achieving double-digit growth rates, a material improvement for a line that had been largely stagnant. Wedbush emphasized that Zoom’s AI initiatives are producing both direct revenue benefits and indirect gains as usage spreads across different enterprise offerings.
Customer retention appears to be improving alongside product adoption. Wedbush reported that churn fell to a record low of 2.7% as of the third quarter of fiscal 2026, a development the firm attributed to the company’s AI-driven enhancements.
Market reaction to Zoom’s recent quarterly results has drawn similar responses from other brokerages. Zoom posted revenue growth of 4.4% year-over-year, exceeding UBS’s estimates by $15 million. Its enterprise segment expanded 6% year-over-year, above UBS’s 5% projection.
Following the quarter, Benchmark reaffirmed a Buy rating and held a $110 price target. Bernstein increased its price target to $90 from $89 while maintaining a Market Perform stance, noting that Zoom has beaten midpoint guidance for the second quarter in a row. Baird continued to carry an Outperform rating with a $95 target and highlighted the potential upside from Zoom’s investment in Anthropic.
Baird’s note estimated that Zoom’s initial $51 million investment in Anthropic, made in May 2023, could be worth between $2 billion and $4 billion based on a rumored Anthropic valuation of approximately $350 billion. The firm framed this as an example of Zoom’s strategic capital allocation complementing its operational performance.
Taken together, the analyst updates reflect a convergence of stronger near-term results, growing AI-driven demand within Zoom’s product set, and improved customer retention metrics. These factors underlie Wedbush’s willingness to apply a higher multiple and to raise its price target while keeping an Outperform recommendation.