JPMorgan lowers ZipRecruiter stock price target to $5 from $7

Published 12/08/2025, 11:50
JPMorgan lowers ZipRecruiter stock price target to $5 from $7

Investing.com - JPMorgan has reduced its price target on ZipRecruiter (NYSE:ZIP) to $5.00 from $7.00 while maintaining a Neutral rating on the stock. The company’s shares, currently trading near their 52-week low of $3.46, have declined over 50% year-to-date.

The investment bank cited macroeconomic pressures affecting broader hiring demand and causing employers to take a cautious approach, which is currently weighing on ZipRecruiter’s top-line growth. According to InvestingPro data, revenue has declined nearly 21% over the last twelve months.

JPMorgan noted that ZipRecruiter operates as a two-sided marketplace that simplifies the job market for both job seekers and employers, and could benefit longer-term from investments made into the marketplace, such as Phil, the company’s personalized AI recruiter. The company maintains impressive gross profit margins of 89.5% and operates with strong liquidity, as evidenced by a current ratio of 7.02.

The firm pointed out that ZipRecruiter is the third-largest player in online recruiting in the United States, and JPMorgan would like to see faster growth, double-digit percentage increases, and improving adjusted EBITDA margin progressing toward the company’s 30% long-term target.

JPMorgan also expressed interest in seeing ZipRecruiter expand its reach to target more of the overall recruitment total addressable market, concluding that the risk-reward balance appears even at current levels.

In other recent news, ZipRecruiter Inc. reported its second-quarter 2025 earnings, revealing a revenue beat. The company announced revenue of $112.2 million, slightly exceeding the forecast of $111.74 million. Despite this positive revenue performance, the company’s stock experienced a notable decline during after-hours trading. The stock fell by 12.91%, closing at $3.99, which is near its 52-week low of $3.46. These developments are part of the recent updates surrounding ZipRecruiter.

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