Goldman Sachs analyst Heather Bellini upgraded Zoom Video Communications (ZM) to Neutral from Sell with a price target of $402, up from $187.

The stock in premarket trading is up 28%, or $89.91, to $415.01.

The company last night reported "another outstanding quarter" driven by work from home trends, Bellini tells investors in a research note. The analyst admits her view on the limits to the company's valuation have been incorrect. It is now prudent to move to the sidelines as the duration of the work from home benefit remains an unknown and as Zoom's technology becomes synonymous with communication in this new era, says Bellini.

She believes the company's momentum is outpacing its valuation.