ZoomInfo stock price target raised to $9.40 from $8.50 at Goldman Sachs

Investing.com - Goldman Sachs raised its price target on ZoomInfo Technologies (NASDAQ:ZI) to $9.40 from $8.50 while maintaining a Sell rating following the company’s second-quarter results. Currently trading at $10.65, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $7 to $15.

ZoomInfo reported revenue growth of 5%, exceeding expectations with a 3.5% beat versus consensus estimates. The company also raised its full-year 2025 revenue guidance by 1.7%, contributing to a 5% after-hours stock price increase. The company maintains impressive gross profit margins of 87.86%, according to InvestingPro data.

The firm noted several positive developments in ZoomInfo’s upmarket transition, including upmarket revenue growing 4% year-over-year and representing 72% of total revenue, improved dollar-based net retention rate to 89%, and the signing of its largest total contract value deal with an existing customer. InvestingPro subscribers can access 8 additional key insights about ZoomInfo’s financial health and growth prospects through the platform’s comprehensive Pro Research Report.

Despite these improvements, Goldman Sachs maintained its Sell rating, citing concerns that upmarket momentum may not sufficiently offset continued down-market pressure, which declined 11% year-over-year. The firm also expressed caution about ZoomInfo’s ability to execute upselling to existing customers while growing new Copilot annual contract value.

Goldman Sachs lowered its fiscal 2026 growth estimates for ZoomInfo to 1% from 3% previously, noting that while the stock’s valuation appears reasonable at approximately 10x CY26 P/E, comparable companies with similar growth rates trade at even lower multiples.

In other recent news, ZoomInfo Technologies Inc. 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, beating the forecast of $296.37 million and marking a 5% increase compared to the same period last year. This strong performance was attributed to improved customer retention and expansion among larger clients. Additionally, ZoomInfo raised its full-year outlook, indicating confidence in its future growth. These developments have been well-received by investors and analysts alike.

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