ZipRecruiter stock price target lowered to $5 by Goldman Sachs

Published 12/08/2025, 12:06
ZipRecruiter stock price target lowered to $5 by Goldman Sachs

Investing.com - Goldman Sachs has lowered its price target on ZipRecruiter (NYSE:ZIP) to $5.00 from $7.00 while maintaining a Neutral rating on the stock. The company, currently trading at $3.48, is showing signs of being slightly undervalued according to InvestingPro analysis, which offers 14 additional investment insights for this stock.

The adjustment follows ZipRecruiter’s Q2 2025 earnings report, which Goldman Sachs described as "solid" with total revenue and adjusted EBITDA falling within guided ranges. The company maintains impressive gross profit margins of 89.5% and a strong liquidity position with a current ratio of 7.02.

ZipRecruiter management indicated that despite a soft broader labor market, the company is seeing early signs of momentum and sequential revenue improvements, raising optimism for a potential return to revenue growth in Q4.

The company highlighted that stabilization trends were broad-based across both enterprise and SMB market segments, with particular strength in healthcare and education verticals, and noted that generative AI answer engines are beginning to deliver more traffic.

ZipRecruiter also announced a $100 million increase to its share repurchase authorization, while indicating that 2026 outcomes will likely be more determinative of margin performance as the company remains focused on growth investments across platform and product.

In other recent news, ZipRecruiter reported its second-quarter 2025 earnings, revealing a revenue of $112.2 million, which slightly exceeded the forecast of $111.74 million. Despite the revenue beat, the company’s stock experienced a notable decline in after-hours trading. In addition, JPMorgan has adjusted its price target for ZipRecruiter, lowering it from $7.00 to $5.00 while keeping a Neutral rating. The investment bank attributed this change to macroeconomic pressures impacting hiring demand and influencing employer behavior, which is affecting ZipRecruiter’s growth. These developments highlight the challenges faced by the company in the current economic climate.

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