Barclays analysts downgraded shares of Snowflake (NYSE:SNOW) and ZoomInfo Technologies Inc. (ZI) to Equal-Weight from Overweight in a note Friday. The analysts maintained the SNOW price target at $198 and the ZI price target at $18 per share.
Barclays said that seat-based models are still with headwinds. In addition, for SNOW they are not comfortable pushing the current high multiple further.
This is because "there is a lot of consumption recovery or new product contribution needed to deliver accelerating product growth," the analysts noted.
Meanwhile, for ZI, Barclays said that they are not sure 2024 will see a significant turnaround as tech still has headcount pressure (although at a lower magnitude), and as a result, they downgraded the stock.
"ZoomInfo operates in a market that is adjacent to the much larger CRM vendors and as such, these vendors could pose a threat if they chose to target the go-to-market data intelligence landscape," Barclays added.