ZoomInfo (NASDAQ:ZI) stock took a major hit today after Bank of America analyst Koji Ikeda downgraded the company from “buy” to “underperform” and slashed the price target to $8 per share. This downgrade comes on the heels of ZoomInfo’s disappointing second-quarter earnings report, which fell short of expectations.
But Bank of America isn’t the only one lowering their estimations of ZoomInfo’s value. Several other investment banks, including Mizuho, RBC Capital, Needham, Piper Sandler, and Deutsche Bank, have also reduced their price targets on ZI stock.
ZoomInfo’s Q2 earnings report was far from impressive, with a quarterly EPS of 17 cents, missing estimates by 29%. The company also reported lower revenue compared to the previous year, further contributing to the negative sentiment surrounding the stock.
ZI Stock Plummets Following Earnings Miss
As a result of the disappointing earnings report, ZI stock has tumbled by 18%, bringing its year-to-date losses to 55%. In contrast, the S&P 500 has seen an 11% increase so far this year, highlighting the underperformance of ZoomInfo’s stock.
Despite the bleak outlook, ZoomInfo’s founder and CEO, Henry Schuck, remains optimistic about the company’s future, citing recent innovative developments such as the launch of ZoomInfo Copilot, an AI-powered offering that provides valuable insights to sales teams.
While the road ahead may be challenging for ZoomInfo, investors should keep a close eye on any potential turnaround in the company’s fortunes. As always, it’s crucial to stay informed and make well-informed decisions when navigating the ever-changing landscape of the stock market.
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