Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Needham has maintained its Buy rating and $15.00 price target on ZoomInfo Technologies (NASDAQ:GTM) following the company’s third-quarter earnings report. This target aligns closely with InvestingPro’s Fair Value assessment, which suggests the stock is currently undervalued with the shares trading at $11.80.
The research firm highlighted ZoomInfo’s strong Q3 performance, noting improvements in both upmarket and downmarket results on a sequential basis. These improvements reflect the positive impact of business changes implemented by the company over the past 18 months. ZoomInfo maintains impressive gross profit margins of 87.7% and has been profitable over the last twelve months, with nine analysts recently revising their earnings expectations upward.
Needham believes ZoomInfo’s fourth-quarter guidance is conservative, while also observing that visibility continues to improve for upmarket trends and downmarket operations are stabilizing. The key development in the downmarket segment is stabilizing churn, though new customer acquisition remains challenged due to broader industry issues.
The firm pointed out that ZoomInfo’s account-based marketing product, ZI Marketing, is gaining market share despite operating in a challenging category. This product’s performance contributed to upside in non-recurring revenue from advertising spend during the quarter.
Needham also identified operations as a continuing bright spot for ZoomInfo, with customers showing ongoing interest in utilizing the company’s dataset as a foundation for their business activities. The company has shown strong momentum with a 31.1% price return over the last six months, though it trades at a relatively high P/E ratio of 46.6. InvestingPro data reveals management has been aggressively buying back shares, with additional ProTips available for subscribers looking to make informed investment decisions on this and 1,400+ other stocks with comprehensive Pro Research Reports.
In other recent news, ZoomInfo Technologies has seen a series of updates following its third-quarter performance. Jefferies raised its price target for ZoomInfo to $16, citing strong third-quarter results and faster-than-expected adoption of its Copilot product. The firm maintained a Buy rating and noted improved business fundamentals. Meanwhile, Goldman Sachs adjusted its price target to $10.70 but kept a Sell rating, highlighting a 4.7% revenue growth and a slight increase in operating margin, despite a decrease in free cash flow margin.
KeyBanc also raised its price target to $9, maintaining an Underweight rating, and observed that ZoomInfo is performing better relative to its guidance for 2025. Piper Sandler increased its target to $12, maintaining a Neutral rating, and pointed out positive upmarket momentum and strong retention rates. RBC Capital raised its price target to $7, following second-quarter results that exceeded revenue expectations by 3.5%. These developments reflect a range of perspectives from analysts on ZoomInfo’s recent performance and future potential.
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