ZoomInfo Technologies (GTM) Confronts AI-Driven Sector Headwinds

ZoomInfo Technologies Inc. (NASDAQ:GTM) is one of the best affordable tech stocks to buy right now. On February 3, Piper Sandler analyst Billy Fitzsimmons maintained a Neutral rating on ZoomInfo Technologies Inc. (NASDAQ:GTM) and lowered the price target to $9 from $12. The price target cut was part of a broader Piper Sandler research note that lowered targets across multiple software companies amid what the firm described as a “structural bearish outlook” triggered by artificial intelligence trends.

Fitzsimmons noted that seat-compression and vibe coding narratives could set a ceiling on multiples. He added that his firm is not making a specific call on upcoming fourth-quarter reports, and suggested that the target change is driven more by sector dynamics than by immediate earnings expectations.

Separately, on the same day, February 3, Jefferies cut its price target on ZoomInfo to $12 from $16.00 while maintaining a Buy rating.

Less than a month ago, on January 12, Barclays analyst Raimo Lenschow maintained an Equal Weight rating on ZoomInfo and lowered the price target to $12 from $14. Lenschow said the key factor behind the decision was that stock valuation levels are low and the software sector is out of favor. Nonetheless, the analyst noted that macro and IT spending are stable, which could support the case that the software industry remains a favorable setup for 2026.

ZoomInfo Technologies Inc. (NASDAQ:GTM) provides a cloud-based platform for sales, marketing, and recruiting professionals. It offers business intelligence and data analytics to help organizations identify and connect with potential customers. Its solutions include company profiles, contact information, and workflow automation tools.

While we acknowledge the potential of GTM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.