ZoomInfo stock price target raised to $11 from $10 at Mizuho

Investing.com - Mizuho (NYSE:MFG) raised its price target on ZoomInfo Technologies (NASDAQ:GTM) to $11.00 from $10.00 on Tuesday, while maintaining a Neutral rating on the stock. According to InvestingPro analysis, the company appears undervalued at its current price of $10.65.

The price target increase follows ZoomInfo’s Q2 results, which showed revenue of $307 million exceeding consensus expectations, though operating margin of 34.1% came in slightly below the consensus estimate of 34.7%. The company maintains impressive gross profit margins of 87.86%, as reported by InvestingPro.

ZoomInfo’s net revenue retention (NRR) improved sequentially to 89%, supported by strength in the upmarket segment, which now comprises 72% of overall annual contract value (ACV). The quarter also marked a record for upmarket CoPilot deals, including the largest ACV win in company history.

The company launched GTM Studio into general availability during the quarter, advancing its shift toward a unified go-to-market intelligence platform. With no reported macro-related impacts, Mizuho believes NRR could modestly improve through the second half of 2025.

Despite the positive Q2 results, Mizuho remains cautious on enterprise renewal visibility and noted continued weakness in the down-market segment, which declined 11% in Q2 and continues to weigh on overall growth.

In other recent news, ZoomInfo Technologies reported second-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $0.25, surpassing the consensus estimate of $0.23. Revenue for the quarter reached $306.7 million, which was above the anticipated $296.37 million and marked a 5% year-over-year increase. Following these results, ZoomInfo raised its full-year 2025 revenue guidance by 1.7%. Analysts have responded positively, with Jefferies raising its price target to $15 from $14, maintaining a Buy rating due to the company’s improved fundamentals. Goldman Sachs also adjusted its price target, increasing it to $9.40 from $8.50, but kept a Sell rating despite the revenue growth. The company’s strong performance was attributed to improved customer retention and expansion among larger clients. These developments reflect the company’s ongoing efforts to enhance its business outlook.

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