Goldman Sachs analyst Eric Sheridan has reiterated their neutral stance on ZIP stock, giving a Hold rating today.
Eric Sheridan has given his Hold rating due to a combination of factors surrounding ZipRecruiter’s recent performance and future outlook. Despite the company’s Q4’24 revenue exceeding expectations and showing strong adjusted EBITDA, management has guided for a significantly lower Q1 adjusted EBITDA. This cautious guidance is attributed to planned investments in marketing and product initiatives aimed at capturing future revenue opportunities.
Furthermore, while there is optimism about a potential return to year-over-year revenue growth by Q4’25, the company faces challenges in balancing these investments with growth opportunities, which could impact margins. Sheridan acknowledges ZipRecruiter’s strong position in the online recruiting market and its ongoing improvements in product and branding, but he maintains a Neutral stance due to the uncertainties in achieving sustained growth. Consequently, the 12-month price target has been adjusted from $9.00 to $8.00, reflecting these considerations.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $8.00 price target.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ZIP in relation to earlier this year.