Why ZoomInfo Stock Popped Today
Shares of ZoomInfo (NASDAQ: ZI) rallied 6.1% on Monday after a notable analyst upgrade for the contact and business information-platform provider ahead of its upcoming quarterly report.
In a note to clients this morning, Bank of America analyst Koji Ikeda raised the firm's rating on ZoomInfo stock to buy from neutral. Ikeda also increased his 12-month price target on ZoomInfo from $20 per share to $25 -- a roughly 48% premium even after today's pop.
Ikeda admitted that their "call is contrarian" to the rest of Wall Street. But he also argued that it's a "best of breed sales enablement platform" that delivers a unique value proposition to clients by driving efficiencies in customer acquisition. The analyst also noted after falling nearly 40% over the past year, ZoomInfo trades at a 50% valuation discount to its peers in the software space, "leaving lots of runway for multiple expansion."
Source Fool.com
