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Investing.com – Zoom stock (NASDAQ:ZM) gained almost 4% Monday as a BofA Securities (NYSE:BAC) analyst called it a top pick and labelled the company’s acquisition of Five9 (NASDAQ:FIVN) a game-changer.
Five9 stock was also up nearly 4%.
Analyst Daniel Bartus has a buy on the video conference firm’s stock with a $480 target, an upside of nearly 29% from the current level of $372.55.
In a July 18 announcement, Zoom said it will buy Five9 in an all-stock deal.
The acquisition is expected to enhance Zoom’s presence with enterprise customers and help the video service target the $24 billion contact center market.
Zoom operates unified communications as a service and Five9 offers Cloud-based customer-service software. Both the markets are still hot and both players are leaders in their respective domains, as per Bartus.
According to the analyst, the trend of bundling the two is increasing and the combination of the technologies will be attractive.
Both markets are early in cloud migration and the analyst cited channel checks as suggesting that Covid continues to drive adoption of the two services.
