Oppenheimer Keeps Their Hold Rating on Zendesk (ZEN)

Oppenheimer analyst Koji Ikeda maintained a Hold rating on Zendesk (ZEN) today. The company’s shares closed yesterday at $87.78, close to its 52-week high of $87.92.

Ikeda commented:

“Zendesk reported good 1Q results and raised the full-year revenue guidance. Favorable data points include: 1) 35%+ growth across: revenue, billings, subscription billings, and deferred revenue; 2) strong RPO growth, particularly from L-T RPO, owing to longer contract durations which should increase model visibility; and 3) good growth in emerging products Sell and Sunshine. On balance, the beat-and-raise trend moderated in 1Q according to our analysis, which could imply less upside to numbers in future quarterly reported results. Bottom line: We believe Zendesk is a quality business, led by a strong and visionary management team. However, we remain on the sidelines until there are more data points suggesting the less upside to results seen in 1Q was more a blip versus a trend. Maintain Perform.”

According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 38.0% and a 98.1% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, BlackLine Inc, and SPS Commerce.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Zendesk with a $89.79 average price target.

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Based on Zendesk’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $33.25 million. In comparison, last year the company had a GAAP net loss of $29.33 million.

Based on the recent corporate insider activity of 170 insiders, corporate insider sentiment is negative on the stock. Last month, Mikkel Svane, the Chair and CEO of ZEN bought 100 shares for a total of $952.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Zendesk, Inc. engages in the provision of customer service platform which enables companies to provide customer support. Its products and services include support; guide; chat; talk; message; inbox team email; explore; connect plus outbound; integrations and apps; embeddables; insights and analytics; and products update.