ZoomInfo: AI + pricing pivot makes road ahead bumpy; Reinstating at Underperform

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ZoomInfo: AI + pricing pivot makes road ahead bumpy; Reinstating at Underperform

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ZoomInfo

AI + pricing pivot makes road ahead

bumpy; Reinstating at Underperform

Reinstating Coverage: UNDERPERFORM | PO: 4.00 USD | Price: 3.92 USD

Distressed valuation reflects structural risk 19 May 2026

We are reinstating coverage of ZoomInfo with an Underperform rating and a $4 PO. Equity

ZoomInfo is a data and software platform that helps sales and marketing teams target

the right companies and decision‑makers. Shares have come under significant pressure Matt Bullock Research Analyst

(-61% YTD) as investors grapple with terminal value risk and concerns that AI poses an BofAS

existential threat to the business. While the company generates substantial free cash +1matthew.bullock2@bofa.com646 556 2903

flows (FY25 unlevered FCF margin ~36%), the 2026 rev growth outlook remains

challenged at -4.4% as end-market demand has softened and the company makes major

changes to revamp its strategy. Looking past this year’s challenges, we think the

Stock Datacompany could face a worsening environment from rapidly intensifying competitive

pressures due to the rise of LLMs and AI agents. Therefore, we see limited near-term Price 3.92 USD

upside for shares even as they trade at a substantial discount. Price Objective 4.00 USD

Date Established 19-May-2026AI erodes premium positioning, raises competitive risk

We think advances in AI are lowering the barriers that once protected ZoomInfo’s Investment Opinion C-3-9

dominance. Tasks such as data extraction, enrichment, and prospect synthesis (which 52-Week Range 3.76 USD - 12.51 USD

historically required years of infrastructure investment) can now be replicated at a Mrkt Val (mn) / Shares Out 1,247 USD / 318.0

fraction of the cost.