Barclays downgrades ZipRecruiter on ‘uncertain path’ to sales growth

Barclays analyst Trevor Young downgraded ZipRecruiter (ZIP) to Equal Weight from Overweight with a price target of $6, down from $10. The stock in morning trading is down 11%, or 73c, to $6.00. While the company’s Q4 beat estimates, its mid-single-digit fiscal 2025 EBITDA margin guidance was materially below estimates as ZipRecruiter “leans in on marketing,” the analyst tells investors in a research note. The firm finds it “challenging to defend” the stock’s valuation following another meaningful cut to its estimates and an “uncertain path” back to positive revenue growth. Further, “it remains highly uncertain that hiring trends are on the mend,” adds Barclays.