ZoomInfo Downgraded Amid Rising Competition And GenAI Concerns: Analyst

RBC Capital Market analyst Rishi Jaluria downgraded ZoomInfo Technologies Inc ZI to Sector Perform from Outperform at a lowered price target of $28 (from $30).

The analyst is bearish on intensifying competition, potential risks to the core value proposition from GenAI, ongoing macro challenges, and data privacy-related long-term concerns. 

As ZoomInfo is an expensive product, the analyst expects tough competition. 

Jaluria indicates ZI’s data is lacking for earlier-stage startups, which is becoming more evident with the rise in well-funded GenAI startups. 

Also, the analyst is increasingly worried that LLMs could be leveraged to find online contact information, and that can impact ZoomInfo’s value proposition in the long term. 

The analyst expects revenue and adjusted EPS of $1.27 billion and $0.99 in 2023 and $1.52 billion and $1.11 in 2024, respectively. 

Also Read: ZoomInfo Technologies Shares Climb As It Wields AI, Gears Up For Next Stage Of Growth

Price Action: ZI shares are trading lower by 3.71% at $25.69 on the last check Monday.