Zendesk May Gain 55% Over The Year. Is It A Good Buy?

Zendesk offers its clients easy-to-use CRM software that provides businesses with a complete sales and support solution. This company is quite successful, even though its shares fell by 22% year-to-date. Experts think that the stock will recover soon. They advise buying the shares until their price is lowered.

With the recent uncertainty due to the coronavirus outbreak, it’s hard to decide which stocks will prove profitable. The World Health Organization labeled the virus a pandemic. Most of the countries with its cases are almost paralyzed to avoid infection. And many businesses suffered severe losses.

However, investors think that several stocks may prove to be profitable. According to the Wall Street analysts, Zendesk is one of them. Several experts set the average price target at $95.54 per share. If the target is met, the stock will grow by 55%.

Why do the experts think that Zendesk will gain?

Even though the stock has fallen over the last year, there are several reasons whyanalysts are positive that the stock will rebound. According to William Blair’s analyst Arjun Bhatia, its Sunshine product has enabled new product cycles to begin. Furthermore, ZEN has upgraded both the Support and Sales Suites.

Bhatia also noted that the new solutions with enhanced feature functionality bode well for the company. However, some experts fear that the coronavirus will negatively impact on the stock.

So far, the company experienced only minor losses. Bhatia has admitted that if the pandemic worsens, Zendesk’s full-year revenue numbers may take a hit. But the analyst seems positive that the coronavirus doesn’t pose a long-term threat to the business.

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. Analysts believe that the company will gain significantly in the long-term.