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Investing.com - KeyBanc has raised its price target on ZoomInfo Technologies (NASDAQ:GTM) to $9.00 from $7.00 while maintaining an Underweight rating on the stock. According to InvestingPro data, the company maintains impressive gross profit margins of 88% and shows strong potential for net income growth, though it currently trades at a relatively high P/E ratio of 82x.
The research firm noted that ZoomInfo is establishing a better cadence relative to its guidance in 2025 compared to last year, which it views as a positive development. KeyBanc also pointed out that next quarter’s guidance appears achievable and does not raise any red flags. InvestingPro’s analysis suggests the stock is currently undervalued, with several additional insights available in the comprehensive Pro Research Report.
According to KeyBanc, the company’s guidance suggesting roughly flat-to-down performance next quarter makes more intuitive sense than what was provided in prior quarters. The firm’s Underweight thesis has performed as expected so far this year.
While ZoomInfo shares have underperformed the iShares Expanded Tech-Software Sector ETF (IGV), which is up just over 10% year-to-date compared to GTM’s 1.3% gain, the stock has shown strength in after-hours trading following its recent results.
Despite being "incrementally encouraged" by ZoomInfo’s performance, KeyBanc stated it is still looking for more comfort in forecasts against more realistic expectations as it continues to evaluate the stock.
In other recent news, ZoomInfo Technologies reported its second-quarter results, which showed a revenue of $307 million, surpassing consensus expectations. This positive performance led several analyst firms to adjust their price targets for the company. Jefferies raised its target to $15, maintaining a Buy rating, citing the company’s better-than-expected results and improved business fundamentals. Piper Sandler also increased its price target to $12, highlighting positive growth and strong upmarket momentum. Mizuho (NYSE:MFG) adjusted its price target to $11, noting the revenue beat despite a slightly lower operating margin than anticipated. RBC Capital raised its target to $7, acknowledging the revenue exceeding expectations by 3.5% but maintained an Underperform rating. Goldman Sachs increased its price target to $9.40, following ZoomInfo’s 5% revenue growth and a 1.7% raise in full-year 2025 revenue guidance, while maintaining a Sell rating. These developments reflect a varied but generally positive reception from analysts regarding ZoomInfo’s recent performance.
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