Analyst Doug Anmuth from J.P. Morgan maintained a Hold rating on ZipRecruiter (ZIP – Research Report) and decreased the price target to $8.00 from $9.00.
Doug Anmuth has given his Hold rating due to a combination of factors influencing ZipRecruiter’s current and future performance. Despite the company’s fourth-quarter results exceeding expectations with revenue and adjusted EBITDA surpassing management’s guidance, there are ongoing challenges. The decline in Quarterly Paid Employers and the macroeconomic pressures affecting hiring demand contribute to a cautious outlook.
While ZipRecruiter shows potential for growth, particularly with its investments in technology and online recruitment, it remains a third player in the U.S. market. The company needs to achieve faster growth and expand its reach to capture more of the recruitment market. Anmuth’s price target reflects a valuation discount compared to peers, indicating that while there are positive trends, the risk-reward balance remains neutral at current levels.
Anmuth covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Netflix, and Alphabet Class C. According to TipRanks, Anmuth has an average return of 19.9% and a 62.47% success rate on recommended stocks.