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ZoomInfo Technologies is a “Buffett-esque” stock with big upside ahead, according to DA Davidson. Analyst Gil Luria initiated coverage of ZoomInfo Technologies with a buy rating, saying the software provider for corporate sales and marketing teams is a “rare” value pick in the sector. “An attractive valuation pertains to timing – more importantly we believe ZI exhibits some Buffett-esque qualities unique within software – a competitive moat, a track record of execution and substantial long-term opportunity,” Luria wrote in a Wednesday note. ZI 1D mountain ZoomInfo Technologies shares 1-day ZoomInfo made its public debut in June 2020, jumping more than 60% in its first day on the Nasdaq. It was the first tech IPO since the start of the coronavirus pandemic. Since then, trading has been volatile for the software stock. It rose 33% in 2021, but dropped 53% in 2022. This year, it’s already down 28% this year. Still, the analyst’s $30 price target implies 39% upside from Wednesday’s closing price. The stock popped 1% in Thursday trading. Luria said he sees a “really tough year for, but noted the stock has “actual valuation protection” without much downside to its multiple. It also has a competitive dividend yield. Additionally, its contact search data product is “hard to replicate,” creating a competitive moat. The provider of sales software should also get a boost from tech layoffs that’s expected to reduce sales departments. “We see the long-term opportunity not only from the base data product, but mostly from continued expansion as the leading Sales Enablement provider,” Luria wrote. —CNBC’s Michael Bloom contributed to this report.
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