ZoomInfo Technologies is a provider of databases for sales and marketing.
Scott Eisen/Bloomberg
Shares of both Dynatrace and ZoomInfo Technologies are trading higher after Goldman Sachs enterprise-software analyst Kash Rangan launched coverage on the two companies with Buy ratings.
For ZoomInfo (ticker: ZI), Rangan’s price target is $65, about 33% above the stock’s Friday close at $48.84. ZoomInfo provides sales and marketing teams with deep databases of contact information.
“ZoomInfo has built a go-to-market data intelligence platform for optimizing digital selling,” Rangan said in a research note. “The platform provides sales reps with a broad, deep, and highly accurate data set to streamline the lead generation process. The return on investment by customers from using ZoomInfo is tangible and measured in increased sales productivity and revenues.”
ZoomInfo has built a balanced business model achieving revenue growth of about 40% and operating margins in the mid-40s, he said. The company “could grow into a multi-billion dollar revenue business,” Rangan said.
For Dynatrace (DT), a provider of IT infrastructure software used to monitor the performance of corporate networks, Rangan also set a price target of $65, almost 28% above Friday’s close at $50.90.
“Dynatrace is a unique software infrastructure provider in that the company’s technology stack is deployed by customers not just for application monitoring and in-production environments, but also in front office business use cases and in development environments,” he wrote.
Rangan said Dynatrace has AI-based automation technology that would be difficult to replicate, as well as a durable, balanced business model that could yield growth in subscription revenue of more than 30% over the long term.
Monday morning, ZoomInfo was up 7.9%, to $52.72, while Dynatrace had gained 3.6%, to $52.71.
Write to Eric J. Savitz at [email protected]
