Analyst Koji Ikeda from Bank of America Securities reiterated a Sell rating on ZoomInfo Technologies (ZI – Research Report) and keeping the price target at $9.50.
Koji Ikeda’s rating is based on a combination of factors that highlight both the strengths and challenges facing ZoomInfo Technologies. While the company’s advanced technology and AI capabilities, such as Copilot, are impressive and have the potential to drive growth, Ikeda notes that the current revenue growth is under pressure, particularly from the downmarket segment. This segment, which constitutes less than a third of total revenue, is experiencing softness that may take several quarters to overcome.
Additionally, Ikeda points out that despite the company’s solid go-to-market strategy and its focus on the upmarket segment, which could lead to higher customer lifetime values, there are few immediate catalysts to significantly boost revenue growth in the short term. As a result, he reiterates a Sell rating with a price objective of $9.50, reflecting a cautious outlook until the anticipated growth materializes.
Based on the recent corporate insider activity of 40 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.
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