D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - RBC Capital raised its price target on ZoomInfo Technologies (NASDAQ:ZI) to $7.00 from $6.00 on Tuesday, while maintaining an Underperform rating on the stock. The company, currently trading at $9.18 with a market cap of $2.93 billion, appears undervalued according to InvestingPro Fair Value analysis.
The price target adjustment follows ZoomInfo’s second-quarter results, which exceeded consensus revenue expectations by approximately 3.5%, marking an improvement over recent trends.
RBC Capital noted ZoomInfo showed improving net revenue retention (NRR) and better-than-expected traction in the up-market segment during the quarter.
Despite these positive developments, the firm highlighted that ZoomInfo’s down-market cohort remains challenged, declining 11.0% year-over-year.
RBC Capital expressed continued concerns about execution risk regarding a material reacceleration in top-line growth, stating that the risk/reward profile "skews negative" while growth trajectory remains muted.
In other recent news, ZoomInfo Technologies reported second-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.25, surpassing the consensus estimate of $0.23. The company also reported revenue of $306.7 million, which was above the anticipated $296.37 million, marking a 5% year-over-year increase. Following these results, ZoomInfo raised its full-year revenue guidance for 2025 by 1.7%.
Analyst firms responded positively to these developments. Mizuho (NYSE:MFG) raised its price target for ZoomInfo from $10 to $11, maintaining a Neutral rating, noting the company’s revenue performance despite a slightly lower operating margin than expected. Jefferies increased its price target from $14 to $15, maintaining a Buy rating, citing the better-than-expected results and improved business fundamentals. Goldman Sachs also raised its price target from $8.50 to $9.40, maintaining a Sell rating, while acknowledging the company’s revenue growth and guidance increase. These adjustments reflect the analysts’ varied perspectives on ZoomInfo’s recent performance and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.