Shares of ZoomInfo Technologies Inc ZI climbed in early trading on Wednesday, after the company released new and enhanced product features based on Generative AI.
The current valuation of the stock offers an “attractive entry point,” especially for those who can wait for a recovery in the “broader demand trends for the company's solutions,” according to Needham.
The Analyst: Joshua Reilly initiated coverage of ZoomInfo Technologies with a Buy rating and price target of $35.
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The Thesis: The company’s accelerated growth in the near term is likely to be driven by the sales of advanced functionality and a “broadening of vertical exposure beyond software and business services, which is 66% of total revenue,” Reilly said in the initiation note.
“Longer-term, we believe the attractive unit economics of ZoomInfo's business model supports impressive FCF leverage,” the analyst wrote.
“Leverage to seat-based model provides upside in a strong economy, but limited defense from layoffs during downturns,” he added.
ZI Price Action: Shares of ZoomInfo Technologies had risen by 5.97% to $25.58 at the time of publishing Wednesday.
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