JHVEPhoto
ZoomInfo (NASDAQ:ZI) rose 4% premarket on Monday amid an upgrade from Bank of America.
The bank increased its rating to Buy from Neutral with a price target to $25 from $20 as the stock is set to outperform.
Zoominfo will show better execution that should drive revenue growth with a revamped executive team. New artificial intelligence products will drive higher monetization and the end of interest rate hike cycles aris likely to be bullish for small- and mid-cap stocks like Zoominfo.
On the ground, checks suggest the brand is strong and differentiated, and demand could be improving, analysts led by Koji Ikeda wrote in a note.
The stock trades at a 50% discount valuation to its software peers, “leaving lots of runway for multiple expansion,” the bank said.
“ZI is controversial and we believe our call is contrarian, so understanding the risks are
Important, BofA said, including cheaper and better competition.
One Wall Street analyst has a Sell rating on the stock; nine say Bold and 11 say Buy or Strong Buy. Seeking Alpha analysts have one Buy, one Hold and two Sells.