Is the Growing Hype Around Zoominfo Technologies for Real?

The latest and greatest technology doesn’t always add up to profits in your portfolio. But analysts at Goldman Sachs are getting firmly behind this next one.

A company called Zoominfo Technologies (ZI) is creating a bit of a buzz around the cloud data space and has become the most recent apple of the eye of Goldman analysts. So much so, that in a recent note, upgrading the stock to a buy rating and $65 price target, the investment firm says Zoominfo is in the early stages of addressing a potential $20 billion market with a less than 2% market share.

What more do investors really need to hear, right?

Further diving into the viability of Zoominfo, Goldman analyst  Kash Rangan said:

“ZoomInfo in our view offers a combination of a proven business model from both a profitability perspective at a relatively early stage of the company’s life and with a sustainable high revenue growth rate for multiple years, resulting, over time, in a multibillion revenue business.”

Goldman argues that overall the market is very underpenetrated, which gives ZoomInfo the potential to become a multibillion-revenue business, with the opportunity to expand outside digital selling to areas, such as human-resources recruiting.

Rangan continued:

“We believe that ZoomInfo is well-positioned to capitalize on the accelerating trend of digital transformation as companies increasingly shift to digital selling due to COVID.”

Since Goldman published the note this morning, shares of Zoominfo have surged as much as 11.69% today during afternoon trading.

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