Here's Why Facebook Messenger Should Help Zendesk

Goldman Sachs’ Jesse Hulsing expressed increased confidence in Zendesk Inc’s ZEN “near-term numbers and long-term growth profile.”

Hulsing maintained a Buy rating ont eh company, while raising the price target from $23 to $29.

“Last week’s announcement of a standalone messaging solution for Facebook Inc FB reinforces our view that ZEN is positioned to sustain share gains in the customer support market as B2C interactions increasingly shift to mobile and social,” Hulsing mentioned.

Zendesk Message

At the same time as Facebook’s F8 conference, Zendesk announced its new standalone messaging service, Zendesk Message. The latter company has previously integrated the former’s messenger with its Zopim live chat product.

Although Zendesk Message was unlikely to be a revenue driver in the near term, Hulsing stated that it was relevant, since it “reinforces our view that the company is benefitting from the rapid emergence of new channels that are forcing modernization within the customer support software market.”

Long Term

Over the long term, Hulsing expects Zendesk to be able to gain wallet share through the automation of basic support tasks with the use of AI or bots.

With respect to the company’s sensitivity with the slowing growth in tech, Hulsing said that “even in a “flat tech” scenario there could be upside to numbers.”