Stifel lowered its price target on ZoomInfo Technologies (NASDAQ:GTM) to $12.00 from $14.00 on Tuesday but maintained a Buy rating on the shares. The revised target remains within a wider analyst range of $7 to $15, as reported in InvestingPro data. At the time of the update, ZoomInfo was trading at $6.51, notably below Stifels target; InvestingPros Fair Value assessment nevertheless flags the stock as currently undervalued.
The analyst move followed ZoomInfos most recent quarterly release, which the firm characterized as showing solid trends exiting 2025 but accompanied by cautious forward guidance that pressured the stock in after-hours trading. Despite that conservative outlook, InvestingPro data shows 22 analysts have revised their earnings estimates higher for the upcoming period, and the company is forecast to remain profitable with an EPS projection of $1.14 for fiscal year 2025.
Stifels note emphasized ZoomInfos momentum in the upmarket segment. Customers with annual contract values exceeding $100,000 now account for 74% of the business, and management has signaled an accelerated timeline to reach an 80-20 split between upmarket and downmarket by the end of 2027. The strategic shift toward larger contracts is supported by the companys reported 87.37% gross profit margin and a free cash flow yield of 17%, according to InvestingPro figures.
Management reacted to the share price decline by expanding the share repurchase authorization by $1 billion. When combined with remaining buyback authority, the company now has repurchase capacity exceeding $1.2 billion, which represents more than half of ZoomInfos market capitalization of $2.05 billion. InvestingPro notes management has been an active buyer of shares; the stock has fallen 28.79% over the last 12 months.
Stifel kept its Buy rating despite the target reduction, pointing to expectations for continued growth in unlevered free cash flow per share driven by top-line expansion, margin improvement and the effect of ongoing share repurchases. The firm also acknowledged sector-wide multiple contraction as a headwind. ZoomInfos recent cash generation remains notable, with $347.8 million in levered free cash flow reported over the past twelve months.
ZoomInfos fourth-quarter results contributed to the mixed analyst response. The company exceeded revenue expectations by roughly 3.2% in the quarter and reported stable net revenue retention. Its upmarket business, which makes up 74% of Annual Contract Value, grew at 6% year-over-year in the quarter.
Analysts across the street have varied in their post-quarter positioning. RBC Capital reduced its target to $7.00 and kept an Underperform rating. Piper Sandler lowered its target to $8.00 and maintained a Neutral stance, noting ongoing turnaround work. DA Davidson cut its target to $7.00, citing 2026 revenue guidance that aligns with consensus expectations. Canaccord Genuity set a $12.00 target, pointing to signs of stabilization and the rollout of new products including an "AI-first workspace." Needham reaffirmed a Buy rating with a $15.00 price target, highlighting the companys robust fourth-quarter performance.
The result is a mixed set of signals for investors: positive operational indicators and strong cash conversion on one hand, and conservative near-term guidance and sector multiple pressure on the other. Stifels decision to reduce the price target while retaining a Buy reflects that balance, stressing the companys improving unit economics and active capital allocation via buybacks even as the broader sector faces valuation compression.
Contextual note: For investors seeking deeper, proprietary analysis and ProTips, InvestingPro offers an extended Pro Research Report on ZoomInfo that details the firms assessments and model assumptions.