ZoomInfo Technologies: Strong Growth Potential and Strategic Innovation Drive Buy Rating

ZoomInfo Technologies (ZI – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst David Hynes from Canaccord Genuity maintained a Buy rating on the stock and has a $15.00 price target.

David Hynes has given his Buy rating due to a combination of factors that highlight ZoomInfo Technologies’ potential for growth and profitability. The company has consistently exceeded its guidance expectations, demonstrating a strong ability to under-promise and over-deliver. This trend is expected to continue, with positive growth anticipated in the near future, particularly in the second quarter. ZoomInfo’s profitability remains robust, with a 33% non-GAAP operating margin and a 41% unlevered free cash flow margin, which are promising indicators for investors.
Additionally, ZoomInfo’s strategic initiatives, such as the launch of GTM Studio, position it uniquely in the market by integrating data, orchestration, AI, and execution capabilities. This innovation is expected to drive growth beyond traditional sales, especially within the rapidly expanding RevOps sector. The company’s focus on increasing its enterprise customer base and the potential for margin expansion as revenue growth resumes further support the Buy rating. With shares trading at an attractive valuation, Hynes sees significant upside potential, making ZoomInfo a compelling investment opportunity.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZI in relation to earlier this year.