What happened
Shares of videoconferencing star Zoom Video Communications (ZM -0.99%) are -- what else? -- zooming higher in Thursday trading, up 5.8% as of 1:25 p.m. EDT.
You can thank Morgan Stanley for that.
Image source: Getty Images.
So what
This morning, the investment banker raised its price target on Zoom stock more than 25%, to $240 a share, reports TheFly.com.
Heading into second-quarter earnings, analysts on average are forecasting a huge surge in profitability for the tech stock -- $0.45 per share, on sales of more than $500 million, which would be more than triple last year's Q2 revenue take. Impressive as those numbers sound, though, Morgan Stanley predicts that Zoom will deliver a "meaningful beat" on both counts, and show improvement in long-term contracts with its customers to boot.
Now what
Is Morgan Stanley right about the earnings beat -- or are all the other analysts, who disagree with MS, correct? We'll find out soon.
Zoom Video is scheduled to report Q2 earnings after the close of trading on Monday, Aug. 31.
