Zoom Video Communications shares have rallied an astounding 600% this year, in perhaps the single-most vivid example of a business that has blossomed during the Covid-19 pandemic. The company had revenue growth in its latest quarter of a hard-to-fathom 355%, driven by huge growth in videoconferencing amid a widespread shift to working and learning from home.
That rally has transformed Zoom (ticker: ZM) into one of the market’s most expensive stocks by most measures—the stock trades for about 200 times current fiscal year estimates earnings and almost 60 times estimated current year sales.
Nonetheless, Mizuho Securities analyst Siti Panigrahi on Friday picked up coverage of Zoom shares with a Buy rating and $550 target price. The stock was trading around $492 Friday afternoon.