Zendesk Hits Record High as Cult Stock Grows 'Faster for Longer’
(Bloomberg) -- Zendesk Inc. is having one of its best days ever with shares rallying to a record high. The move comes as investors cheer the company’s fourth-quarter revenue upside.
The solid results and guidance brought confidence to Wall Street as management goes full speed ahead on a strategy to move upmarket. Canaccord Genuity analyst David Hynes Jr. says the "strong finish bodes well for the year ahead." Canaccord boosted it price target on Zendesk by nearly 31 percent to $85 a share.
Zendesk has grown into a cult name as the stock has been on a tear. The customer support, software provider has soared 116 percent since last year began. And "Zendesk could be one of those ‘faster for longer’ stories, where growth doesn’t decay nearly as fast as investors may expect," Hynes believes.
Several other analysts have also echoed Canaccord, increasing their price targets to reflect the positive sentiment and strength in revenue. Shares of Zendesk gained as much as 15 percent on Wednesday.
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