Source: Unsplash 

Morgan Stanley analyst Meta Marshall upgraded Zoom Video Communications (ZM) to Overweight from Equal Weight with a price target of $400, up from $360.

The stock's valuation has "turned too negative" on near-term churn concerns ahead of catalysts in the second half of 2021, Marshall tells investors in a research note.

The analyst thinks enterprise momentum, combined with margin headwinds dissipating, creates a "positive setup" into Zoom's Q2 results. Revenue expectations are "doable," and when combined with the upcoming Zoomtopia conference and fiscal 2023 guidance in a couple of quarters, a more optimistic stance on the stock at the current valuation is warranted, says Marshall.