SKN | BofA Reinstates Buy Rating on Zoom as Its Enterprise Strategy Gains Momentum

Key Takeaways:

• Bank of America has reinstated its Buy rating on Zoom Communications, signaling renewed confidence in the company’s longer-term growth profile.
• BofA analyst Matt Bullock set a $130 price objective, based on a reference price of $104.71.
• The bank’s thesis centers on Zoom’s expansion beyond meetings into phone, contact center and artificial intelligence products.
• For sophisticated investors, BofA’s move highlights how institutional analysis is increasingly focused on Zoom’s enterprise diversification rather than its pandemic-era meeting business.

Bank of America is taking a more constructive view of Zoom Communications, reinstating its Buy rating as the software company develops a broader enterprise platform. The decision is significant because it reflects a shift in the bank’s assessment of Zoom’s ability to generate sustainable growth after the normalization that followed the pandemic.

BofA Sees a Stronger Enterprise Growth Story

BofA analyst Matt Bullock assigned Zoom a $130 price objective, implying roughly 24% upside from the $104.71 reference price used in the bank’s research. More importantly, Bullock argues that Zoom’s setup for sustainable growth has become materially more attractive as enterprise technology spending improves and newer product categories begin contributing more meaningfully to revenue.

This represents a different investment framework from the one that defined Zoom during the pandemic. Rather than relying primarily on its meetings franchise, the company is building a wider suite of communications and collaboration services designed to deepen relationships with corporate customers.

Why BofA Is Looking Beyond Zoom Meetings

Zoom’s post-pandemic normalization created a difficult period for the company, with contract reductions, a mature meetings market and intense competition from Microsoft Teams weighing on its growth profile. BofA’s renewed optimism reflects evidence that this adjustment may be giving way to a more stable enterprise trajectory.

Zoom reported fiscal first-quarter 2027 revenue of $1.24 billion, representing 5.5% year-over-year growth, while enterprise revenue increased 7.2%. BofA expects newer businesses to help move overall growth toward the mid-single-digit range, providing a potentially more diversified revenue base.

The Strategic Signal for Private Capital

For HNWI investors, the more relevant signal is not simply the $130 target but why a major global bank has changed its stance. Zoom Phone has surpassed 10 million paid seats, while Contact Center has exceeded $100 million in annual recurring revenue. These milestones indicate that the company’s enterprise opportunity is becoming broader than its original meetings franchise.

BofA’s upgrade therefore illustrates a broader institutional preference for software businesses capable of monetizing existing corporate relationships across multiple product categories. The critical consideration will be whether Zoom can convert that expanding product footprint into durable growth while maintaining disciplined execution.

For clients evaluating technology exposure within a broader global wealth structure, BofA’s reassessment provides a useful lens on how established financial institutions are separating mature pandemic beneficiaries from companies developing credible second-stage growth engines. For a confidential discussion regarding technology exposure and your broader cross-border wealth structure, contact our senior advisory team.