ZoomInfo stock price target raised to $12 from $11 at Piper Sandler

Investing.com - Piper Sandler raised its price target on ZoomInfo Technologies (NASDAQ:ZI) to $12.00 from $11.00 on Tuesday, while maintaining a Neutral rating on the stock. According to InvestingPro data, ZI currently trades at a P/E ratio of 79.6x, reflecting high growth expectations.

The firm’s decision follows ZoomInfo’s return to positive growth, albeit on easier comparisons. Piper Sandler noted encouraging indicators including positive upmarket momentum, with 72% mix of Annual Contract Value (ACV) and the highest upmarket retention in years. The company maintains impressive gross profit margins of 87.9%.

ZoomInfo also demonstrated cross-sell traction, particularly with its Operations and Copilot products, and secured a nearly 8-figure deal in July, according to the research note.

Despite these positive signals, Piper Sandler highlighted that ZoomInfo’s 2025 guidance implies only 0.5% year-over-year growth for the full year. The downmarket segment, representing 28% of ACV, continued to contract in Q2, declining 11% year-over-year.

The new $12 price target represents 8x Calendar Year 2030 estimated EV/FCF, discounted back three years by 14%, with Piper Sandler factoring in higher free cash flow margin of 42% compared to 40% previously. InvestingPro analysis suggests ZI is currently undervalued, with additional insights available in the comprehensive Pro Research Report.

In other recent news, ZoomInfo Technologies reported second-quarter earnings that surpassed analyst expectations, with adjusted earnings per share reaching $0.25 compared to the consensus estimate of $0.23. The company achieved revenue of $306.7 million, exceeding the $296.37 million estimate and marking a 5% year-over-year increase. Following these results, ZoomInfo raised its full-year revenue guidance for 2025 by 1.7%. Various analyst firms responded to these developments by adjusting their price targets for the company. Jefferies increased its price target to $15, maintaining a Buy rating, citing improved fundamentals and raised guidance. Mizuho (NYSE:MFG) raised its target to $11 while keeping a Neutral rating, noting the revenue beat despite a slightly lower operating margin than expected. RBC Capital adjusted its target to $7, maintaining an Underperform rating, while Goldman Sachs increased its target to $9.40, keeping a Sell rating. These adjustments reflect the company’s better-than-expected performance and positive outlook.

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