Morgan Stanley Boosts Zendesk (ZEN) Price Target to $102.00

Zendesk (NYSE:ZEN) had its target price upped by Morgan Stanley from $97.00 to $102.00 in a report issued on Wednesday, May 1st, BenzingaRatingsTable reports. Morgan Stanley currently has an overweight rating on the software maker’s stock.

ZEN has been the subject of several other research reports. KeyCorp raised their target price on Zendesk from $71.00 to $92.00 and gave the stock an overweight rating in a research note on Wednesday, February 6th. Bank of America reaffirmed a buy rating and issued a $105.00 price target (up from $100.00) on shares of Zendesk in a report on Wednesday, May 1st. Craig Hallum upped their price objective on shares of Zendesk from $68.00 to $84.00 and gave the stock a buy rating in a research report on Wednesday, February 6th. Zacks Investment Research upgraded shares of Zendesk from a hold rating to a buy rating and set a $65.00 price objective for the company in a research report on Sunday, January 6th. Finally, Canaccord Genuity upped their price objective on shares of Zendesk from $65.00 to $85.00 and gave the stock a buy rating in a research report on Wednesday, February 6th. Five analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. Zendesk has a consensus rating of Buy and an average price target of $90.93.

Shares of NYSE:ZEN opened at $87.96 on Wednesday. The company has a market capitalization of $9.75 billion, a P/E ratio of -92.59 and a beta of 1.64. Zendesk has a 52 week low of $45.60 and a 52 week high of $90.00. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34.

Zendesk (NYSE:ZEN) last issued its quarterly earnings data on Tuesday, April 30th. The software maker reported ($0.28) EPS for the quarter, hitting analysts’ consensus estimates of ($0.28). Zendesk had a negative net margin of 22.52% and a negative return on equity of 25.37%. The company had revenue of $181.48 million during the quarter, compared to the consensus estimate of $179.53 million. During the same quarter in the previous year, the firm posted $0.02 earnings per share. Zendesk’s revenue for the quarter was up 39.8% compared to the same quarter last year. On average, sell-side analysts predict that Zendesk will post -1.07 EPS for the current fiscal year.

In related news, CFO Elena Gomez sold 455 shares of the company’s stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $87.09, for a total transaction of $39,625.95. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adrian Mcdermott sold 446 shares of the company’s stock in a transaction dated Thursday, May 16th. The stock was sold at an average price of $87.09, for a total transaction of $38,842.14. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 142,688 shares of company stock valued at $11,698,604. Insiders own 4.60% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in ZEN. Wellington Management Group LLP raised its position in shares of Zendesk by 138.7% during the 1st quarter. Wellington Management Group LLP now owns 3,041,153 shares of the software maker’s stock worth $258,499,000 after purchasing an additional 1,766,870 shares during the last quarter. Norges Bank acquired a new position in shares of Zendesk during the fourth quarter worth $54,056,000. Westfield Capital Management Co. LP increased its position in shares of Zendesk by 97.9% during the fourth quarter. Westfield Capital Management Co. LP now owns 1,498,026 shares of the software maker’s stock worth $87,440,000 after purchasing an additional 741,013 shares in the last quarter. Macquarie Group Ltd. increased its position in shares of Zendesk by 389.1% during the fourth quarter. Macquarie Group Ltd. now owns 863,145 shares of the software maker’s stock worth $50,382,000 after purchasing an additional 686,660 shares in the last quarter. Finally, Voya Investment Management LLC increased its position in shares of Zendesk by 2,005.4% during the first quarter. Voya Investment Management LLC now owns 683,936 shares of the software maker’s stock worth $58,135,000 after purchasing an additional 651,451 shares in the last quarter. Hedge funds and other institutional investors own 94.16% of the company’s stock.

About Zendesk

Zendesk, Inc, a software development company, provides SaaS products for organizations. Its flagship product is Zendesk Support, a system for tracking, prioritizing, and solving customer support tickets across various channels. The company also offers Zendesk Chat, a live chat software to connect with customers on Websites, applications, and mobile devices; Zendesk Talk, a cloud-based call center software; Zendesk Guide, a knowledge base that powers customer self-service and support agent productivity; Zendesk Sell, a sales force automation software to enhance productivity, processes, and pipeline visibility for sales teams; Zendesk Connect that manages customer communication across channels; and Zendesk Explore, which provides analytics for businesses to measure and enhance the customer experience.

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Analyst Recommendations for Zendesk (NYSE:ZEN)

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