JPMorgan analyst Sterling Auty raised the firm's price target on Zoom Video Communications to $150 from $125 and keeps an Overweight rating on the shares. The stock in premarket trading is down 8% to $107.31.

The $13M in revenue upside in Q4 may not be as much as some expected because of the hype around how Zoom is benefitting from COVID-19, Auty tells investors in a post-earnings research note. The analyst, however, respects the company's action in the Far East to help by eliminating time caps on free users. Ultimately, getting more people to try the solution will lead to even better long-term market penetration, says Auty.

He notes that he's never witnessed this level of continued operating leverage expansion.