ZoomInfo stock price target raised to $13 from $11 at DA Davidson

Investing.com - DA Davidson raised its price target on ZoomInfo Technologies (NASDAQ:ZI) to $13.00 from $11.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, ZoomInfo is currently trading at $11.69, with analysts setting targets ranging from $8 to $16. The company appears undervalued based on InvestingPro’s Fair Value analysis.

The firm cited ZoomInfo’s above-average top-line performance, which exceeded expectations by 4.7% compared to a two-year average of 1.2%. The company demonstrated continued success in the upmarket segment and sequential improvements within its downmarket customer base. This aligns with ZoomInfo’s impressive 87.37% gross profit margin and total revenue of $1.24 billion for the last twelve months.

DA Davidson noted that while the downmarket cohort still declined 10% year-over-year this quarter, this segment represents a shrinking portion of ZoomInfo’s overall revenue base, decreasing by 6 percentage points year-over-year to 27% of total Annual Contract Value (ACV).

The price target increase to $13 from $11 reflects a multiple of 13 times the company’s projected 2026 unlevered free cash flow (uFCF), according to the firm’s analysis.

Despite expressing an incrementally more positive outlook on ZoomInfo’s ability to grow, DA Davidson maintained its Neutral rating, citing "various moving pieces" in the company’s business model.

In other recent news, ZoomInfo Technologies reported better-than-expected third-quarter results, with revenue surpassing consensus estimates by approximately 4.7%. This performance has led to several analysts adjusting their price targets for the company. Jefferies raised its price target to $16 while maintaining a Buy rating, citing strong quarterly performance and accelerated upmarket growth. Needham also reiterated a Buy rating with a $15 price target, highlighting improvements in both upmarket and downmarket results.

Goldman Sachs increased its price target to $10.70 but kept a Sell rating, noting revenue growth and an increase in operating margin. RBC Capital raised its target to $8, maintaining an Underperform rating, and emphasized the company’s improving execution. KeyBanc Capital Markets adjusted its price target to $10, maintaining an Underweight rating, and pointed to positive upmarket momentum. ZoomInfo’s raised fiscal 2025 revenue guidance reflects the company’s improving fundamentals. These developments indicate a mixed but generally positive reception from analysts following the recent earnings report.

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