ZoomInfo Technologies Inc. (ZI) was cut to Equal-Weight from Overweight at Morgan Stanley on Thursday, with analysts lowering the stock price target to $20 from $24 per share.
Analysts explained that a slower recovery in sales job postings and increasing competition lowers their outlook on the company's future growth.
"We are incrementally cautious on the pace of recovery in ZI's customer base after 1) new rounds of tech layoffs & 2) weaker job posting data in January," analysts explained.
"Checks point to increased competition in the B2B data asset and greater demand for lower-priced solutions in a tight spending environment," they added.
Morgan Stanley also believes that generative artificial intelligence presents risks for the continued plateauing adoption of Advanced Functionality.
"[The] valuation is undemanding at 13x CY25 FCF, but reasonable given subdued FCF growth & pushed-out catalyst for re-acceleration," concluded analysts.