B.Riley has increased its price target for Zeta Global Holdings Corp (NYSE: ZETA) to $37.00, up from the previous $30.00, while reiterating a Buy rating on the stock.
The adjustment follows the firm's attendance at Zeta Live in New York City on Thursday, where the in-person attendance more than doubled year-over-year.
The event showcased Zeta's cutting-edge customer data and AI infrastructure, which are essential for brands looking to provide personalized marketing at scale.
The analyst noted three main takeaways from Zeta Live. Firstly, Zeta Global announced the launch of its new intelligent mobile solution, which has already been adopted by global brands across various sectors such as retail, media, entertainment, financial services, and agencies.
Secondly, discussions at the event indicated that the use of generative AI in marketing is expected to grow significantly. The integration of new AI agents into the Zeta Marketing Platform (ZMP) positions Zeta to benefit from this trend, which is anticipated to enhance efficiency in marketing and business intelligence.
Moreover, the company publicized a new partnership with Yahoo and an expanded relationship with Snowflake (NYSE:SNOW). This news underscores the increasing recognition and expansion of Zeta, which is poised to support the company's robust business trajectory in the future. In response to these developments, B.Riley has updated its financial model, raising FY24/FY25 estimates and introducing FY26 projections.
In other recent news, Zeta Global has seen a series of price target increases from various firms, including Needham, Craig-Hallum, Truist Securities, RBC Capital, and DA Davidson, all of which maintain a Buy rating.
Financial highlights include a 33% rise in year-over-year revenue for the second quarter of 2024 and raised third-quarter expectations. Zeta Global also made significant financial moves, including a public offering of 11 million shares of its Class A common stock and securing a $550 million loan facility for debt refinancing.
The company's annual customer conference, Zeta Live, showcased new product offerings and platform enhancements, including mobile functionalities, vertical clouds, and additional AI agents.
InvestingPro Insights
Zeta Global Holdings Corp's recent developments and B.Riley's optimistic outlook are further supported by real-time data from InvestingPro. The company's revenue growth of 25.16% over the last twelve months, with an even stronger quarterly growth of 32.61% in Q2 2024, aligns with the analyst's positive projections. This growth trajectory is particularly impressive given the company's substantial market cap of $6.79 billion.
InvestingPro Tips highlight that 5 analysts have revised their earnings upwards for the upcoming period, reinforcing B.Riley's bullish stance. Additionally, Zeta's strong return over the last three months and large price uptick over the last six months corroborate the market's positive reception of the company's strategic initiatives and partnerships announced at Zeta Live.
While Zeta operates with a moderate level of debt and its liquid assets exceed short-term obligations, indicating financial stability, investors should note that the company is trading at a high revenue valuation multiple. This valuation reflects the market's high expectations for Zeta's future performance, particularly in light of its AI-driven marketing solutions and expanding partnerships.
For readers interested in a deeper analysis, InvestingPro offers 11 additional tips for Zeta Global Holdings Corp, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.