Zoom stock downgraded by JPMorgan after 505% rally on concerns a COVID-19 vaccine could dent further upside

Zoom stock downgraded by JPMorgan after 505% rally on concerns a COVID-19 vaccine could dent further upside

Eric Yuan, CEO of Zoom Video Communications takes part in a bell ringing ceremony at the NASDAQ MarketSite in New York, New York, U.S., April 18, 2019.

Carlo Allegri/Reuters

Zoom Video's potential upside is fully priced into the stock and mass COVID-19 vaccinations could put a dent in the company's subscriber business, according to a note from JPMorgan.JPMorgan downgraded Zoom to Neutral from Buy in a note on Wednesday, though it did raise its price target on the video communications company to $450 from $425.JPMorgan notes that the highest multiple stocks in 2009 underperformed in 2010, and the environment is ripe for a similar setup into next year.Visit the Business Insider homepage for more stories.

The upside potential in Zoom Video is likely limited going forward as mass vaccinations for the COVID-19 virus could put a dent in the firm's business, according to a Wednesday note from JPMorgan.

The bank downgraded Zoom Video to Neutral from Buy and raised its price target to $450 from $425, representing potential upside of 9% from Tuesday's close.

Shares of Zoom Video have rallied 505% year-to-date as of Tuesday's close as social distancing and economic lockdowns caused rapid growth in the use of Zoom's communication software.

According to JPMorgan,