S&P 500 falls as traders turn sour on tech
Investing.com - KeyBanc Capital Markets raised its price target on ZoomInfo Technologies (NASDAQ:ZI) to $10.00 from $9.00 on Tuesday, while maintaining an Underweight rating on the stock. ZoomInfo currently trades at $11.80, with InvestingPro data indicating the stock may be undervalued based on its Fair Value assessment, despite trading at a high P/E ratio of 46.55.
The firm cited improving upmarket momentum as a key factor in the decision, noting that upmarket revenue grew 6%, an increase from 4% in the previous quarter, showing positive signs for the company’s turnaround efforts. This momentum has contributed to ZoomInfo’s impressive 31.11% price return over the past six months.
Despite continued challenges in the low-end segment, ZoomInfo’s net retention rate improved to 90%, according to KeyBanc’s analysis of the company’s performance through 2025.
The research firm expects ZoomInfo’s free cash flow per share growth to accelerate in 2026, with the company committing to growing revenue, expanding margins, and repurchasing shares next year.
KeyBanc indicated it would consider a more positive stance on ZoomInfo if revenue growth and margin expansion drive performance rather than share repurchases, but maintained its Underweight rating while adjusting the price target to reflect updated estimates. Analyst targets for ZoomInfo range from $8 to $16, with a comprehensive Pro Research Report available on InvestingPro for investors seeking deeper analysis on this $3.76 billion market cap company.
In other recent news, ZoomInfo Technologies reported strong third-quarter results, leading several analyst firms to adjust their stock ratings and price targets. Needham reiterated its Buy rating with a price target of $15, noting improvements in both upmarket and downmarket performance. Jefferies also maintained a Buy rating and increased its price target to $16, highlighting the company’s raised 2025 guidance and accelerating upmarket growth due to faster-than-anticipated Copilot adoption. Meanwhile, Goldman Sachs raised its price target to $10.70 but maintained a Sell rating, citing a 4.7% revenue growth and an increase in operating margin, despite a decrease in free cash flow margin. KeyBanc raised its price target to $9, keeping an Underweight rating, and noted that ZoomInfo is establishing a better cadence relative to its guidance for 2025. Piper Sandler increased its price target to $12 with a Neutral rating, observing positive upmarket momentum and the highest upmarket retention in years. These developments reflect a mix of optimism and caution among analysts regarding ZoomInfo’s future performance.
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