ZoomInfo Technologies Gains Upgrade from BofA Global Research Analyst

ZoomInfo Technologies has experienced a significant increase in its shares following an upgrade from BofA Global Research analyst Koji Ikeda.

In his research note, Ikeda raised his rating on the stock from Neutral to Buy and increased the price target to $25, up from $20. As a result, ZoomInfo shares have soared by 7.6% to $17, potentially providing an impressive gain of over 30%.

Ikeda praises ZoomInfo as a leading sales enablement platform that empowers customers to enhance their customer acquisition strategies, driving higher efficiencies. During the past year, the company's shares have declined by 39%, largely due to concerns over its growth rate. However, Ikeda anticipates a turnaround, projecting a return to high single-digit growth with the aid of a revamped management team.

Moreover, Ikeda highlights the introduction of new AI-powered versions of ZoomInfo's service, which are expected to enhance monetization opportunities. Additionally, he believes the conclusion of the Federal Reserve's credit-tightening cycle will have a positive impact on mid-cap stocks like ZoomInfo.

Furthermore, the analyst emphasizes that ZoomInfo possesses a "strong and differentiated" brand, while its stock is currently trading at a valuation that is 50% lower than its peers in the software industry.