BofA Securities Downgrades ZoomInfo Technologies (ZI) to Neutral, 'we also see limited upside'

BofA Securities analyst Koji Ikeda downgraded ZoomInfo Technologies (NASDAQ: ZI) from Buy to Neutral with a price target of $34.00 (from $35.00).

The analyst comments "We downgrade ZoomInfo (ZI) to Neutral and lower our PO to $34 (was $35) given the potential for prolonged demand headwinds affecting its revenue growth profile well into 2023. We believe the company has built an attractive customer engagement platform and has the potential to gain share over the long-term. However, the macro-affected demand environment has resulted in elongating sales cycles, resulting in the business shifting go-to-market capacity away from demand generation to drive cross-sell and upsell activity. Moreover, 4Q22, 1Q23 and 2Q23 represent tough growth comps for the business due to the inorganic revenue contributions from Chorus.ai and other acquisitions, which may create tough optics. With the business generating meaningful free cash flow, we see limited downside from current price. However, we also see limited upside given concerns on persisting demand headwinds and execution risks

For an analyst ratings summary and ratings history on ZoomInfo Technologies click here. For more ratings news on ZoomInfo Technologies click here.

Shares of ZoomInfo Technologies closed at $29.44 yesterday.

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