Stifel maintains Buy on ZoomInfo, price target steady at $14

Published 13/05/2025, 11:12
Stifel maintains Buy on ZoomInfo, price target steady at $14

On Tuesday, Stifel analysts upheld their Buy rating on ZoomInfo Technologies (NASDAQ:ZI) with a continuous price target of $14.00. According to InvestingPro data, the company maintains an impressive gross profit margin of 87.83% and has shown strong momentum with a 15.97% return over the past week. The analysts highlighted the introduction of GTM Studio as a significant enhancement for ZoomInfo, expanding its reach from its standard top-of-funnel sales development representative (SDR) application to account executives/account managers (AE/AM), revenue operations (RevOps), sales operations (SalesOps), and go-to-market (GTM) leadership roles. This strategic move is marked by ZoomInfo’s ticker change on May 13 to "GTM". With a market capitalization of $3.49 billion and a "GOOD" overall financial health score from InvestingPro, the company appears well-positioned to execute this strategic expansion.

GTM Studio is designed to serve as a central hub for all GTM personnel, integrating both first- and third-party data into a unified platform. This consolidation of data is further augmented by ZoomInfo’s AI-powered activation layer, which aims to streamline the GTM process.

The reaffirmation of the Buy rating follows ZoomInfo’s first-quarter performance, which was characterized by steady stabilization and a sequential improvement in net revenue retention (NRR). Despite the broader macroeconomic headlines, management at ZoomInfo has observed no significant shifts in customer behavior. However, they have incorporated an additional layer of caution into their guidance as a prudent measure. Based on InvestingPro analysis, the company appears undervalued at current levels, with analysts expecting net income growth this year. For deeper insights into ZoomInfo’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. Notably, the positive outcomes of the first quarter have not been extended to the higher end of ZoomInfo’s revenue guidance.

ZoomInfo’s commitment to enhancing its platform with GTM Studio and the steady financial performance in the first quarter underpins Stifel’s confidence in the company’s stock. The upcoming ticker change to "GTM" reflects the company’s strategic focus on broadening its market influence and providing comprehensive solutions for GTM professionals.

In other recent news, ZoomInfo Technologies reported first-quarter 2025 earnings that exceeded market expectations, with an earnings per share (EPS) of $0.23, surpassing the forecasted $0.22. The company also reported revenue of $306 million, exceeding the anticipated $295.56 million. This performance led to a notable 10.53% increase in ZoomInfo’s stock during aftermarket trading. Despite these positive results, KeyBanc Capital Markets maintained an Underweight rating on ZoomInfo, citing skepticism about the sustainability of the company’s growth factors. Similarly, Goldman Sachs raised its price target for ZoomInfo to $8.50 from $7.50 but kept a Sell rating, expressing concerns about the company’s ability to counterbalance pressures in the down-market segment. JMP Securities maintained a Market Perform rating, noting that while ZoomInfo’s unlevered free cash flow was higher than expected, the company’s revenue saw a slight year-over-year decline. These developments highlight a mixed outlook from analysts, with some acknowledging positive financial results but expressing caution about future growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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