📉 Nikkei is down nearly 5% -> here are 43 recession-proof Japanese stocks from our screenerUnlock Now

RBC Capital raises Zeta Global stock target on strong positioning

EditorAhmed Abdulazez Abdulkadir
Published 09/28/2024, 11:05 AM
ZETA
-

On Friday, RBC Capital Markets adjusted its outlook on Zeta Global Holdings Corp (NYSE:ZETA), a technology company specializing in data-driven marketing, by increasing the stock's price target. The new price target is set at $34.00, up from the previous $29.00, while the firm maintains an Outperform rating on the shares.

The adjustment follows RBC Capital's attendance at Zeta Global's user event, Zeta Live. During the event, the company's management presented new products and discussed the current challenges facing marketing departments. The firm's representatives expressed that Zeta Global is strategically poised to offer solutions to these challenges.

In a statement, the firm acknowledged the evolving landscape of marketing and Zeta Global's advantageous position within it. The increased price target to $34 reflects raised estimates and an adjusted target multiple, indicating a positive outlook for the company's financial performance.

Zeta Global's strategic focus on resolving marketing department challenges and its innovation in product offerings appear to be key factors in RBC Capital's optimistic assessment. The maintained Outperform rating suggests that Zeta Global is expected to perform better than the overall market or its sector in the eyes of the analysts at RBC Capital.

In other recent news, Zeta Global has been making notable strides in its financial performance and business developments. The company reported a 33% year-over-year revenue increase for the second quarter of 2024 and raised its third-quarter 2024 expectations, projecting a minimum revenue of $255 million and an adjusted EBITDA of at least $50.2 million.

This optimistic outlook resulted in analyst upgrades from firms including BofA Securities, DA Davidson, Needham, Canaccord Genuity, and Craig-Hallum, all of which maintained a Buy rating and increased their price targets for Zeta Global.

On the product front, Zeta Global has launched the Zeta Media Engine, a tool designed to enhance programmatic advertising through Snowflake (NYSE:SNOW)'s platform. Additionally, the company unveiled a new intelligent mobile solution and expanded its AI Agents lineup, aiming to improve consumer interactions and business outcomes. These innovations are part of Zeta Global's ongoing efforts to leverage big data, machine learning, and artificial intelligence to personalize marketing efforts at scale.

In terms of strategic initiatives, Zeta Global has undertaken 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. These actions are expected to enhance the company's financial structure and flexibility, potentially positioning it favorably for mergers and acquisitions.

InvestingPro Insights

Following RBC Capital Markets' updated outlook on Zeta Global Holdings Corp, InvestingPro data and tips offer additional insights into the company's financial health and market performance. With a market capitalization of $6.82 billion and a significant year-to-date price total return of 237.3%, Zeta Global's stock has been on a notable upward trajectory. The company has experienced strong revenue growth in the last twelve months as of Q2 2024, with a 25.16% increase, showcasing its expanding presence in the data-driven marketing sector.

InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, and the company is predicted to be profitable this year. These revisions could be a reflection of Zeta Global's strategic initiatives and product innovations that were well-received at their user event, Zeta Live. Additionally, the company's liquid assets exceeding short-term obligations indicate a solid financial position to meet its current liabilities.

Despite not being profitable over the last twelve months and trading at high revenue and Price/Book valuation multiples, the strong performance over the last month, quarter, and six months underscores the market's positive reception to Zeta Global's growth strategy. For readers interested in a deeper dive, InvestingPro provides a trove of additional insights, with 12 more InvestingPro Tips available to explore at https://www.investing.com/pro/ZETA.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.