Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Zendesk Inc (NYSE:ZEN) is a "fast-growing, best-of-breed SaaS company" that is gaining market share in the customer engagement category, according to Oppenheimer. The company has expanded its product portfolio and has an installed base that offers monetization opportunities, in the sell-side firm's view.
Despite these positives, Zendesk's share price does not offer an attractive entry point, particularly due to potential weakness in SMB demand and acqusition risks, Oppenheimer said in a Thursday note.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The Analyst
Oppenheimer’s Koji Ikeda initiated coverage of Zendesk with a Perform rating.
The Thesis
Zendesk should be able to sustain its competitive advantage, given its leadership position in the customer service category and a large monetizable installed base, Ikeda said in the initiation note.
The company is also poised to benefit as its new product cycles ramp up, the analyst said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
Customer engagement has become a meaningfully large category, with companies using next-gen technology to connect better with customers, according to Oppenheimer. Technology providers in the segment like Zendesk are operating in a total addressable market estimated at more than $20 billion, in the firm's view.
Risks come due to the softening SMB end market and the possibility that FutureSimple integration takes longer than anticipated, Ikeda said.
Zendesk’s stock is trading at a premium to the SaaS industry average, and its future potential seems to be priced in, the analyst said.
The company’s shares have appreciated around 600 percent since its May 2014 IPO versus an average gain of 240 percent for the SaaS group and a 40-percent gain for the S&P 500, Oppenheimer said.
Price Action
Zendesk shares were up 0.76 percent at $64.89 at the time of publication Thursday.
Related Links:
This Day In Market History: The California Gold Strike
Amazon Rolls Out Robots, Trying Automated Delivery In Seattle Area
Photo courtesy of Zendesk.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.