BofA Securities lowered its price target on ZoomInfo Technologies (NASDAQ:ZI) to $30.00 from $32.00 while maintaining a Neutral rating, noting it believes there is a risk to the revenue growth guidance of 16-17% for 2023.
The recent software and technology layoffs, along with potential constraints on financial services tech spend, may lead to a reduction in guidance during the upcoming Q1/23 earnings call, according to BofA Securities. Despite this, analysts believe that the software company can generate significant free cash flow, which could help support its valuation.
The analysts view ZoomInfo’s stock’s risk-reward as balanced given ongoing technology sector layoffs and disruption in financial services.