ZoomInfo Technologies (GTM) PT Raised to $12 at Piper Sandler

Piper Sandler analyst Brent A. Bracelin raised the price target on ZoomInfo Technologies (NASDAQ: GTM) to $12.00 (from $11.00) while maintaining a Neutral rating.

The analyst commented: "Returns to Growth, But Guide Suggests Flattish Full-Year Outlook; A return to positive growth (albeit on easier compares), positive commentary around upmarket momentum (72% mix of ACV, highest upmarket retention in years, nearly 8-figure deal signed in July), and cross-sell traction (esp. Operations and Copilot) are encouraging indicators of GTM's path forward. That said, 2025 guidance implies only +0.5% y/y growth for the year and the downmarket segment (28% mix of ACV) continued to contract in Q2 (-11% y/y). While we are increasing our PT to $12 from $11, rolling forward to CY30E and factoring in higher FCF margin (42% vs. 40% prior), we think it remains prudent to wait for additional signs of a sustainable return to growth. Our $12 PT represents a conservative 8x CY30E EV/FCF (vs. prior 8x CY29E EV/FCF), discounted back 3 years by 14%."

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