The Covid-19 pandemic has accelerated the adoption of cloud-based communication solutions as companies and businesses find the merging of various communicating modalities such as voice, mail, chat, and video to be cost-effective and efficient, particularly when it comes to addressing customer needs within their niche. What’s more, these solutions accommodate all sorts of communication requirements for a company or business, putting the $60 billion communication software-as-a-service (SaaS) market in a bullish trend.
Bank of America (NYSE: BAC) analyst Daniel Bartus addressed the shift on Tuesday, saying in a note to investors that the cloud-based communication market is “poised for more cloud migration”. He also noted that he expects the upside trend to continue in a post-pandemic world and that the bullish shift is also present on two related applications: contact center as a service (or CCaaS) and “communications platform as a service,” or CPaaS.
In his note Bartus reinstated coverage of the following stocks with UCaaS and CPaaS leaders RingCentral Inc (NYSE: RNG), which he rates a Buy with a price target of $450 a share, and Twilio Inc (NYSE: TWLO): Buy rating, $480 price target as his top stock picks in the following group:
Zoom Video Communications Inc (NASDAQ: ZM): $480 price target with a Buy rating. Zoom shares closed 0.79%% lower at $321.78 on Tuesday. Bartus believes “Zoom is here to stay as the undisputed meetings leader with a hybrid workforce.”
8×8, Inc. (NYSE: EGHT): Neutral rating, $39 price target. At last check, ticker was trading up 1.13% at $32.97.
Five9 Inc (NASDAQ: FIVN): rated Underperform, $190 target. The stock trades around $172.50 per share as of Wednesday morning.
As of writing, Twilio shares are up $0.19, or 0.05%, to $367.65. RingCentral shares traded 6 points higher at $325.22 in the after-market session Tuesday.