Figma Shares Indicated To Open $105/$110
On Tuesday, DA Davidson analyst Gil Luria increased the price target on ZoomInfo Technologies (NASDAQ:ZI) to $10.00, up from the previous $8.00, while maintaining a Neutral rating on the shares. The adjustment follows ZoomInfo’s recent performance, which included a strong top-line beat, although the company’s updated guidance suggested a softer top line compared to earlier in the year. This cautious outlook is attributed by the company to incremental conservatism.
ZoomInfo’s net revenue retention (NRR) remained constant sequentially at 87%, even as the company received positive feedback regarding retention among its larger customers. Luria noted that despite ZoomInfo’s early gains from its restructuring efforts, challenges persist in the downmarket segment. These ongoing issues, along with limited visibility beyond the year 2025, have led DA Davidson to maintain its Neutral stance on the stock.
The company’s profitability outlook remains unchanged, reinforcing the analyst’s decision. The reiteration of profitability, combined with the steady NRR, suggests that while there are positive aspects to ZoomInfo’s current performance, there are also factors that warrant a cautious approach.
Luria’s commentary highlighted ZoomInfo’s current market position and future prospects, stating, "While the company is seeing early benefits from its restructuring efforts, downmarket trends are still a headwind and limited visibility beyond 2025 leads us to maintain our NEUTRAL rating and raise our PT from $8 to $10 PT (12x ’26 uFCF)."
Investors and market watchers will likely continue to monitor ZoomInfo’s performance and the impact of both internal restructuring and external market conditions on its business trajectory. The company’s ability to navigate these headwinds and capitalize on its restructuring benefits will be crucial in determining its future growth and stock performance.
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