DA Davidson has lowered its price objective for ZoomInfo Technologies (NASDAQ:GTM) to $7.00 from $13.00, while keeping a Neutral rating on the stock. The revised target sits slightly below ZoomInfo's most recent trade at $7.32, though InvestingPro's Fair Value assessment indicates the stock may be undervalued relative to that trading level.
The firm's decision to cut the target follows ZoomInfo's guidance for 2026, which DA Davidson characterized as bracketing consensus expectations. The research note also pointed to a top-line beat that was consistent with the company's pattern in prior quarters this year.
DA Davidson reported that ZoomInfo shares declined by roughly 6% in after-hours trading once the note was released. In a follow-up callback with management, the company said the 2026 guidance was "closer to the pin" and signaled that it expects smaller quarterly beats than it delivered in 2025.
Alongside the guidance, ZoomInfo announced an additional $1 billion share repurchase authorization. At current market prices, that authorization would permit the company to repurchase approximately 46% of its outstanding shares.
ZoomInfo also released fourth-quarter 2025 results that exceeded consensus. The company reported non-GAAP earnings per share of $0.32, beating the $0.28 consensus, and posted revenue of $319.1 million versus the $309.25 million analysts had expected.
Despite the quarter's upside, analysts offered mixed reactions. Citizens downgraded its rating on ZoomInfo from Market Perform to Market Underperform and set a $6.00 price target. Citi maintained a Sell stance with a $6.50 target. Conversely, Needham reiterated a Buy rating and kept a $15.00 price objective, citing the solid fourth-quarter outcome. Canaccord Genuity also retained a Buy rating but trimmed its price target to $12.00 from $15.00, noting modest improvements in the company's condition.
These developments illustrate varied analyst perspectives on ZoomInfo's near-term trajectory, even as the company reported results that beat expectations and authorized a substantial buyback program. The divergence in price targets and ratings underscores differing assessments of the sustainability of ZoomInfo's recent performance and its outlook for 2026.
Summary
DA Davidson cut its price target on ZoomInfo to $7.00 while keeping a Neutral rating after the company's 2026 guidance and fourth-quarter 2025 results. Shares slipped about 6% in after-hours trading; management indicated guidance is "closer to the pin" and expects smaller quarterly beats than in 2025. ZoomInfo also approved an additional $1 billion buyback authorization. Other analysts' price targets range from $6.00 to $15.00, reflecting mixed sentiment.