KeyBanc analyst Brent Bracelin reiterated a Buy rating on Zendesk (ZEN) yesterday and set a price target of $71. The company’s shares closed yesterday at $52.55.
Bracelin said:
“We view these sales extensions as a natural evolution given the industry has shifted to more closely align sales and support silos in order to drive better customer experiences. While this could elevate the competitive overlap with over time, we also see these new products as instrumental levers to sustain high growth beyond the $1B revenue milestone. the “Experience Era.” The “Experience Era” has surfaced in 2018 as one of the most prolific new strategic battlefronts for the cloud software vendors, evident by accelerating growth rates at Twilio and Five9 coupled with billions of dollars spent on strategic M&A. This week, SAP announced plans to acquire Qualtrics for $8B. Last month, Twilio announced plans to acquire Sendgrid for $2B.”
According to TipRanks.com, Bracelin is a top 100 analyst with an average return of 18.7% and a 68.8% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Salesforce.com, and Everbridge Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Zendesk with a $71.44 average price target, representing a 35.9% upside. In a report issued on October 29, RBC Capital also maintained a Buy rating on the stock with a $70 price target.
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Based on Zendesk’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $34.14 million. In comparison, last year the company had a GAAP net loss of $27.69 million.
Based on the recent corporate insider activity of 147 insiders, corporate insider sentiment is negative on the stock.
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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.
