KeyBanc Assigns a Buy Rating on Zendesk

By Ryan Adsit

KeyBanc analyst Brent Bracelin assigned a Buy rating to Zendesk (NYSE: ZEN) yesterday and set a price target of $58. The company’s shares closed yesterday at $55.11, close to its 52-week high of $57.31.

Bracelin said:

“We believe ZEN remains well positioned to benefit as a cloud software enabler. Seasoned software veteran to help sustain high-growth profile. The analyst day brought Wall Street’s first exposure to Norm Gennaro, the new SVP of Worldwide Sales. Three focus areas that could help sustain >25% y/y growth include: 1) increasing efficiency within the volume & velocity segment through further automation and self- service functionality; 2) building out a partner channel initially through resellers and then SI partnerships; and 3) further enterprise expansion through broader upsell of the Zendesk Suite product portfolio and increasing product attach-rates. Outlines ambitious plan to build a multi-billion-dollar franchise.”

According to, Bracelin is a top 100 analyst with an average return of 20.1% and a 74.6% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies,, and Everbridge Inc.

Currently, the analyst consensus on Zendesk is Strong Buy and the average price target is $56.50, representing a 2.5% upside.

In a report issued on May 2, Canaccord Genuity also maintained a Buy rating on the stock with a $60 price target.

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Based on Zendesk’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $29.33 million. In comparison, last year the company had a GAAP net loss of $26.99 million.

Based on the recent corporate insider activity of 147 insiders, corporate insider sentiment is negative on the stock. Most recently, in March 2018, Aian Mcdermott, the President of Products of ZEN sold 40,000 shares for a total of $1,741,200.

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Zendesk, Inc. engages in the provision of customer service platform which enables companies to provide customer support. Its products and services include support; guide; chat; talk; message; inbox team email; explore; connect plus outbound; integrations and apps; embeddables; insights and analytics; and products update.