Analysts follow sectors/industries in-depth and tend to know how local and global conditions tend to affect demand and prices. Though analyst projections should not be your only resource when determining your position on a stock, it can be a very useful tool. As a refresher, the company earned $122 million in revenue and a normalized basic EPS of just $0.01 in Q1 2020.See Full ZM Report Why are Analyst Ratings Important?

Regardless, the consensus expectations for the company’s results are quite strong, with a broad swathe of analysts expecting the company to earn, on average, an EPS of $0.09 per share on the back of $203.02 million in revenue. Meanwhile, Morgan Stanley analyst Meta Marshall has adopted a more cautious tone vis-à-vis Zoom, noting that the company has not been able to depict an 'ability to fully monetize' its user base up till now. On the 27th of May, Baird raised Zoom’s stock price target to $180 from $120 on the back of expectations for “strong” quarterly results and guidance.

Of course, this development comes as Zoom is preparing to announce its Q1 2021 earnings on Tuesday. Nonetheless, the upgrade has only served to add fuel to an already-scorching rally, with Zoom’s stock posting an increase of $23.45 or 13.07 percent as of the midday in the current trading session. Interestingly, even though this constitutes a 57.89 percent increase in the target, the latest benchmark still poses a downside potential of 25.96 percent relative to Zoom’s current stock price at $202.59 (as of 12:11 p.m. On Monday, Rosenblatt raised Zoom’s stock price target to $150 from $95 while maintaining an overall ‘Neutral’ rating.

Zoom stock target