On Monday, Zeta Global Holdings Corp (NYSE: ZETA) shares saw its price target increased to $36.00 from the previous $33.00, while maintaining a Buy rating, by a Needham analyst.
The adjustment follows the analyst's attendance at the Zeta Live 2024 event, which witnessed a year-over-year doubling in attendance, demonstrating the rising recognition of the Zeta brand among marketers and advertisers.
The event, which was well-attended with 1,300 participants, centered on current challenges for Chief Marketing Officers, such as the advent of Generation AI and the connected consumer. The showcasing of Zeta's product roadmap was a key feature of the event, including the announcement of new mobile functionalities, vertical clouds, and additional AI agents.
The analyst from Needham believes that Zeta Global's focus on mobile is crucial for the company's long-term success. Positive initial feedback from customers on the new mobile features reinforces this view. The new price target of $36.00 is based on an enterprise value to sales multiple of 7.4 times the firm's fiscal year 2025 estimates.
The sum of the parts analysis conducted by the analyst supports the revised price target, indicating confidence in the company's growth trajectory and product offerings. The enhancements to mobile capabilities and the introduction of additional tools and AI agents are expected to contribute to Zeta Global's continued success in the competitive marketing and advertising landscape.
In other recent news, Zeta Global reported a 33% increase in year-over-year revenue for the second quarter of 2024 and raised its third-quarter expectations. Financial firms such as Craig-Hallum, Truist Securities, RBC Capital, and DA Davidson have increased their price targets for the company, maintaining a Buy rating. This follows Zeta Global's unveiling of new product offerings and platform enhancements at the annual customer conference, Zeta Live.
The company 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. Additionally, Zeta Global launched the Zeta Media Engine in collaboration with Snowflake (NYSE:SNOW) and a new intelligent mobile solution, expanding its AI Agents lineup to improve consumer interactions and business outcomes.
These recent developments underscore Zeta Global's strong positioning and growth trajectory, with analysts expressing confidence in the company's ability to establish itself as a leading entity in the Software as a Service sector. The company's new product offerings are expected to expand its total addressable market, and ongoing developments with industry partners are cited as reasons for optimism about the company's future performance.
InvestingPro Insights
Zeta Global Holdings Corp's recent performance and financial metrics align with the positive outlook presented in the article. According to InvestingPro data, Zeta has demonstrated impressive growth with a 32.61% increase in quarterly revenue as of Q2 2024. This robust growth supports the analyst's optimistic view and increased price target.
InvestingPro Tips highlight that Zeta has seen a strong return over the last three months, which is consistent with the positive momentum discussed in the article. Additionally, the tip indicating that analysts predict the company will be profitable this year aligns with the optimistic outlook presented by the Needham analyst.
The company's market capitalization of $6.79 billion reflects its significant presence in the marketing technology space, further validating the increased attention from marketers and advertisers mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Zeta Global Holdings Corp, providing a deeper understanding of the company's financial health and market position.
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