As previously reported, Wells Fargo downgraded ZoomInfo (ZI) to Equal Weight from Overweight with a price target of $11, down from $14. The firm sees FY25 as a transition year for ZoomInfo. The company continues to need to work through write-down headwinds from the SMB cohort and a new risk model for signing up SMBs that currently represents a $2M/mo headwind in potential new sales; other avenues for growth re-acceleration in sales headcount recovery and copilot adoption remain possible in 2025, but both aren’t likely to meaningfully contribute until the second half of the year or even 2026 and margins are not likely to recover until growth recovers as well.
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