Analyst Optimistic About Zendesk Inc (ZEN) Following 2Q Results
Analyst Alex Zukin of Piper Jaffray reiterated Overweight rating for Zendesk Inc (NYSE:ZEN) with a $35 price target, marking a 21% increase from current levels. This came after ZEN reported earnings with revenues at $74.2 million, 54% increase YoY. The analyst notes the how “the decreasing magnitude of beats will likely weight on the stock.” The company’s $1 million beat for billings is well below the $4-5 million beats that the company is accustomed to. Zukin feels this is due to “the cadence of Enterprise deals that the company expects to be more concentrated in 2H16.” He still feels that the company has a lot of room to grow.
According to TipRanks, Zukin has a success rate of 69% with an average return of 10.6% per recommendation.