Shares of ZoomInfo Technologies (NASDAQ:ZI), a cloud-based market-intelligence platform, popped today after the company’s stock received an upgrade from hold to buy from Canaccord Genuity analyst David Hynes yesterday.
The company’s stock was up as much as 15.5% in today’s trading. But as of 2:22 p.m. EDT, the stock had gained 12.9%.
Hynes upgraded ZoomInfo’s stock to a buy and raised the stock’s price target to $50 in an investor report. Hynes believes demand for the company’s services could increase because businesses need additional insights as more employees are working from home.
Hynes also said he believes the company has a “legitimate moat” surrounding its services, which investors were clearly pleased to hear.
ZoomInfo became a publicly traded company on June 4, but since its official listing the company’s stock has been very volatile. ZoomInfo’s stock nearly doubled on its first day of trading, but the company’s share price has significantly declined since that initial pop.
Today’s share price jump helped ZoomInfo’s stock gain some additional ground, though, and the stock is up 16% since its IPO. There could be more volatility ahead for ZoomInfo, as investors continue to sift through news about the U.S. economy and the coronavirus pandemic. Tech stocks were flying high between March and September, but some investors have cooled to the sector since the beginning of this month.