By Sam Boughedda
Shares of ZoomInfo Technologies Inc (NASDAQ:ZI) have declined over 3% Friday, in line with the rest of the market, despite analysts speaking positively about the company following its investor day event.
Here are comments from four analysts regarding the event.
Piper Sandler's Brent Bracelin, who has an Overweight rating and a $65 price target on the stock, said the company outlined the vision of an expanding product portfolio that now spans sales, operations, marketing, and talent as the means to sustain high growth, high margins, and drive revenue to a $2B run-rate by the end of CY24. "The enterprise opportunity, in particular, appears compelling, underpinned by material expansions at Adobe (NASDAQ:ADBE) and Coupa (NASDAQ:COUP) across additional seats, products, and use cases," said Bracelin. "With the leadership team outlining a firm 37% margin floor, ZI clearly remains committed to profitable growth and won't further erode the business model even as it attempts to layer in more applications to complement its leadership position in data."
Credit Suisse analyst Phil Winslow has an Outperform rating and a $100 price target on the stock. In a note, the analyst said "ZoomInfo’s durable leadership in B2B intelligence and vision to move 'up the stack' with differentiated applications that leverage this unique data set, combined the company’s strong unit economics, underscore our thesis that a premium valuation is warranted compared to current levels."
Truist analyst Terry Tillman reiterated a Buy rating and $85 price target on Zoominfo, stating the company "exhibited confidence in top-tier growth and profitability. Armed with numerous newer capabilities and products around the company's RevOS platform, ZoomInfo raised its TAM to $100 billion from $70 billion last year, pulled forward its $2 billion revenue run rate target to 2024 from 2025, and flexed impressive operating margin guardrails (high 30s to high 40s) which represent the best mix of growth and profits in our coverage."
Finally, Stifel analyst J. Parker Lane said they "remain believers in the value proposition of ZoomInfo's platform and see the company's unique combination of high growth and profitability as an attractive point of differentiation in the software space, in light of the recent volatility in the macro." The analyst has a Buy rating and a $75 price target on the stock.