Zoom stock price regained momentum after plunging sharply at the beginning of the year due to the broader market tech selloff. After hitting $350, the shares of the video calling company bounced back above $400. However, the shares are still presenting a buying opportunity for long-term investors as the shares are still trading well below from an all-time high of $475.

Zoom shares are also trading well below the analyst’s price target. BofA has provided a price target of $475, with a buy rating. BofA has provided the street high price target due to the stronger than expected second-quarter results along with the rosy outlook for the rest of the year.

ZM Zoom Video Communications, Inc. daily Stock Chart

“The results confirm our view that ZM is both a ‘vaccine’ and ‘vitamin’ as COVID-19 has permanently shifted the world to a hybrid-work environment and clearly elevated the awareness of cloud communications and video conferencing. This gives us confidence that these results are not just a pull-forward of business, but are durable and sustainable trends.”

Zoom has generated second-quarter revenue growth of 355% to $663.5 million, up substantially from analysts’ consensus estimate of $500M.

In addition, the company also reported massive profitability amid robust revenue growth. Its operating income jumped to $188.1 million compared to last year’s income of $2.3 million.

Zoom also looks strong in terms of cash position. Its net cash from operations came in at $401.3 million, while the free cash flow stood around $373.4 million in the second quarter. The total liquidity was $1.5 billion.

The company expects third-quarter revenue to hit $685-$690 million. The market analysts are expecting third-quarter revenue in the range of $492.9 million. The company says full-year revenue is likely to hit $2.39 billion, representing a growth of 281% from the past year. The analysts say robust revenue growth is likely to back the share price momentum during the final quarter this year.