Analyst Mark Murphy of J.P. Morgan maintained a Buy rating on ZoomInfo Technologies (ZI – Research Report), with a price target of $14.00.
Mark Murphy has given his Buy rating due to a combination of factors that highlight ZoomInfo Technologies’ potential for long-term growth. The company has shown progress in stabilizing its business, with a notable increase in its annual contract value for ZoomInfo Copilot, which jumped from $60 million to $150 million. This growth is supported by the company’s strategic shift towards higher-value customers and the implementation of a new business risk model aimed at reducing write-offs.
Additionally, ZoomInfo’s focus on upmarket growth and operational improvements is expected to pave the way for sustainable growth. Despite challenges in the macroeconomic environment, particularly affecting the SMB segment, the company has demonstrated resilience with better-than-expected revenue and operating income figures. The positive momentum in its mid-market and enterprise segments, along with strong free cash flow generation, further supports the Buy rating for investors with a longer-term perspective.
In another report released today, Needham also maintained a Buy rating on the stock with a $15.00 price target.