ZoomInfo Technologies Receives Positive Outlook Adjustment from Jefferies
ZoomInfo Technologies has received a positive outlook adjustment from Jefferies on Tuesday, with the firm raising its price target for the stock from $20.00 to $24.00 while maintaining a Buy rating. Jefferies’ analysis shows that ZoomInfo has exceeded expectations, with its 2024 guidance surpassing predictions.
This strong performance can be attributed to several factors, including a surge in new sales in December and a shorter sales cycle. The Net Revenue Retention rate has also stabilized, and there is an increase in the number of “boomerang” customers returning to the company. Based on these factors, Jefferies believes that ZoomInfo’s business fundamentals may be reaching a turning point.
Although estimated revenue is expected to increase, lower margins are forecasted. Jefferies’ analyst emphasized ZoomInfo’s recent performance and positive outlook, stating that results were better than anticipated. The analyst further mentioned upbeat comments on new sales, the sales cycle, NRR stabilization, and the number of returning customers as boomerangs. Jefferies reiterates its Buy rating for the stock.
InvestingPro also supports Jefferies’ positive outlook on ZoomInfo, reporting that the company’s net income is expected to grow this year. This aligns with Jefferies’ raised price target.
ZoomInfo’s strong financial position is evidenced by its impressive gross profit margins, which reached a high of 88.5% in the last twelve months as of Q3 2023. Moreover, the company has a market capitalization of $6.24 billion and has experienced a significant revenue growth of 20.22% for the same period. The company’s operational efficiency is reflected in its operating income margin of 20.67%. Additionally, ZoomInfo has demonstrated substantial EBITDA growth of 45.84% in the last twelve months as of Q3 2023. The company’s stock has also shown resilience, with a price total return of 27.65% over the last three months, despite market fluctuations.
Overall, these data and insights reinforce ZoomInfo’s strong financial position and its appeal to investors.
Analyst comment
Positive news.
As an analyst, it is expected that the market for ZoomInfo Technologies will experience growth due to positive outlook adjustment from Jefferies, increased price target, and maintained Buy rating. The company’s strong financial position, impressive profit margins, significant revenue growth, and operational efficiency will attract investors, resulting in increased market value and potential profit for shareholders. However, lower margins are forecasted, which may impact profitability.
