Key Highlights

  • Zoom Communications (NASDAQ:ZM) was upgraded to Outperform from Perform by Oppenheimer on Wednesday, October 21, 2026, with a price target of USD 130 to USD 139 depending on the report.
  • On the same day, RBC cut Mobileye Global (NASDAQ:MBLY), the driver-assistance chip maker majority owned by Intel (NASDAQ:INTC), to Underperform with a USD 5 price target.
  • Oppenheimer's Perform rating is its neutral grade and normally carries no price target, so the upgrade introduces a valuation marker that did not exist before.
  • The two calls point in opposite directions for enterprise software and auto technology stocks, and they come shortly ahead of Zoom's fiscal third-quarter end on Saturday, October 31, 2026.

Two Calls on One Day

Zoom Communications (NASDAQ:ZM), which renamed itself in November 2024 to reflect a wider platform of phone, contact centre and AI assistant products beyond video meetings, was upgraded by Oppenheimer on Wednesday, October 21, 2026. The broker moved its rating to Outperform from Perform, with a price target given as USD 130 or USD 139 depending on the report. On the same day, RBC Capital Markets cut Mobileye Global (NASDAQ:MBLY) to Underperform with a USD 5 target. Mobileye designs the EyeQ chips and software that carmakers use for driver-assistance features such as lane keeping and automatic braking. The calls sat in a busy day of rating changes that also included Baird's upgrade of Northrop Grumman and Arete's double downgrade of Fortinet.

How the Two Business Models Explain the Split

For Zoom (NASDAQ:ZM), the case rests on a subscription business: customers pay recurring fees, and a large share of revenue renews each year, so cash generation is relatively predictable. Growth has slowed since the pandemic peak, which is why the shift toward phone, contact centre and AI products matters for any rerating, meaning a higher valuation multiple. Mobileye works differently. Its revenue depends on automaker production volumes and on design wins, contracts that place its chips in future models, so it is exposed to the car cycle and to price competition. An Underperform rating at RBC signals expected returns below the sector, and the USD 5 target marks the value RBC sees for the shares over its forecast horizon.

Risks and What to Watch

The first risk for Zoom (NASDAQ:ZM) is that newer products fail to offset slow growth in its core meetings business, which would leave the upgrade looking early. The second is competition from bundled suites such as Microsoft (NASDAQ:MSFT) Teams, which come packaged with office software many companies already buy. For Mobileye, the risks to RBC's bearish view are the reverse: a large design win or a stronger auto production outlook could lift estimates quickly. Rates matter for both, with the 10-year Treasury yield near 5.1%. Investors should watch Microsoft results and the Fed decision on Wednesday, October 28, 2026, the end of Zoom's fiscal third quarter on Saturday, October 31 and the midterm elections on Tuesday, November 3.

Where Things Stand

The answer is that Oppenheimer sees enough in Zoom (NASDAQ:ZM) to move from neutral to positive with a USD 130 to USD 139 target, while RBC sees downside for Mobileye with a USD 5 target. One call backs recurring software revenue, the other flags risk in the auto chip cycle. The next catalysts are Microsoft results and the Fed on October 28 and Zoom's quarter end on October 31. Price targets are opinions, not guarantees, and this is not investment advice.