Mizuho analyst maintains ZM PT $550

Yesterday, Zoom Video Communications (NASDAQ:ZM) shares closed down 17.4% after positive phase 2/3 data for Pfizer’s coronavirus vaccine weighed down work from home stocks.

Mizuho Securities analyst Siti Panigrahi recommends buying on the pullback as the company’s “near- and long-term growth drivers remain intact, and its license-based (not usage-based) model provides downside protection.”

The analyst sees Zoom benefiting even after the pandemic as the “video conferencing solution has become a critical component of how companies communicate.”

Mizuho maintains a Buy rating and $550 price target.