ZoomInfo Technologies: Balancing Strong Q4 Performance with Growth Sustainability Concerns – Hold Rating Maintained

Mizuho Securities analyst Siti Panigrahi has maintained their neutral stance on ZI stock, giving a Hold rating yesterday.

Siti Panigrahi’s rating is based on a combination of factors that reflect both positive outcomes and potential challenges for ZoomInfo Technologies. The company reported strong fourth-quarter results, exceeding expectations in both revenue and earnings per share, largely driven by its AI offerings and CoPilot solution, particularly in the enterprise and mid-market segments. Furthermore, the guidance for fiscal year 2025 was above consensus, indicating optimism about future performance.
However, despite these positive indicators, there are concerns about the sustainability of growth, especially given the anticipated revenue decline due to challenging comparisons and dynamics in the downmarket segment. While there is stabilization in the business and growth in the enterprise sector, the lack of clear visibility into long-term growth trends led to maintaining a Hold rating. The ongoing risks in the small and medium-sized business segment and the conservative nature of the guidance also contributed to this cautious stance.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $13.00 price target.