The stock markets are in an uproar lately due to the coronavirus pandemic. Some futures fluctuate, while others fell downright, suffering severe losses. Amidst the panic, it’s especially hard to make decisions about investments.
Which stocks would be a good choice, and which ones would bring doom to investors? Even experts hesitate about some futures. However, several stocks may prove to be profitable if given a chance. According to the Wall Street analysts, Zendesk is one such stock.
This company offers its clients easy-to-use CRM software that provides businesses with a complete sales and support solution. Zendesk’s shares declined by 22% year-to-date. However, this is one of the reasons why experts recommend the stock. They think that it will rebound soon, and it would be wise to grab the shares while the price is low.
How much could the investors’ profit with this stock?
Several Wall Street analysts set the average price target at $95.54 per share. If the target is met, shareholders will gain roughly 55%.
According to William Blair’s analyst Arjun Bhatia, the company has real potential to grow. Its Sunshine product has enabled new product cycles to begin, and ZEN has upgraded both the Support and Sales Suites.
The new solutions with enhanced feature functionality bode well for the company – noted Bhatia, as the suite selling has worked well in the past. Even though some experts fear that the coronavirus will severely impact the stock. So far, the company experienced only minor losses.
However, Bhatia admitted that if the pandemic worsens, Zendesk may suffer severely, with its full-year revenue numbers taking a hit.
Despite that fact, coronavirus doesn’t pose a long-term threat to the business – assured the analyst. Zendesk used the freemium approach as an effective way to get as many developers using Sunshine as possible while driving an upgrade motion for Support customers as well. This step will bring the company profit in the long term.
- Trading Instrument