Koji Ikeda, an analyst from Bank of America Securities, maintained the Sell rating on ZoomInfo Technologies (ZI – Research Report). The associated price target is $9.50.
Koji Ikeda’s rating is based on a combination of factors that highlight challenges for ZoomInfo Technologies. Despite reporting better-than-expected results with revenue and unlevered free cash flow surpassing estimates, the company’s revenue growth outlook for 2025 remains negative. This declining growth profile is difficult to justify in the competitive software industry, prompting a cautious stance.
Furthermore, while ZoomInfo’s AI offering, Copilot, shows promising growth potential, management’s conservative guidance reflects concerns, particularly in the downmarket segment. Although there are positive indicators such as improved net revenue retention and an expanded share buyback program, these are not sufficient to offset the negative growth trajectory. Consequently, Ikeda maintains a Sell rating, reflecting the challenges ZoomInfo faces in reversing its revenue decline.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZI in relation to earlier this year.