Why ZoomInfo Stock Popped Today
Shares of ZoomInfo (NASDAQ: ZI) rallied 6.1% on Monday after a notable analyst upgrade for the contact and business information-platform provider ahead of its upcoming quarterly report.
Why this analyst thinks ZoomInfo is "best of breed"
In a note to clients this morning, Bank of America analyst Koji Ikeda raised the firm's rating on ZoomInfo stock to buy from neutral. Ikeda also increased his 12-month price target on ZoomInfo from $20 per share to $25 -- a roughly 48% premium even after today's pop.
Ikeda admitted that their "call is contrarian" to the rest of Wall Street. But he also argued that it's a "best of breed sales enablement platform" that delivers a unique value proposition to clients by driving efficiencies in customer acquisition. The analyst also noted after falling nearly 40% over the past year, ZoomInfo trades at a 50% valuation discount to its peers in the software space, "leaving lots of runway for multiple expansion."
What's next for ZoomInfo stock?
ZoomInfo is slated to release its fourth-quarter and full-year 2023 results after the market closes on Feb. 12, 2024. For perspective, management's latest guidance calls for quarterly revenue of $309 million to $312 million (or modest year-over-year growth of just under 3%) and adjusted (non-GAAP) net income per share of $0.24 to $0.25.
Whether ZoomInfo meets, exceeds, or falls short of that guidance might well determine the near-term direction of its shares. But considering the stock has fallen hard even as the broader market rallied in 2023, it's no surprise to see ZoomInfo bouncing today given this encouraging vote of confidence from Wall Street.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Steve Symington has positions in ZoomInfo Technologies. The Motley Fool has positions in and recommends Bank of America. The Motley Fool has a disclosure policy.
Why ZoomInfo Stock Popped Today was originally published by The Motley Fool