DA Davidson has adjusted its outlook on Zeta Global Holdings Corp (NYSE:ZETA), a data-driven marketing technology company, by increasing its price target to $35 from the previous $30 while maintaining a Buy rating on the stock.
The adjustment follows a non-deal roadshow (NDR) held last week in Milwaukee and Chicago, where Zeta Global's CFO, Chris Greiner, and EVP of Data Cloud, Winnie Shen, presented.
During the event, a product demonstration highlighted the expanding applications of Zeta's marketing platform and how the company can deliver a return on investment for its clients through enterprise intelligence and sophisticated activation capabilities.
DA Davidson's analyst noted that the meetings provided a clearer picture of Zeta's competitive edge, which is largely attributed to its proprietary data-driven insights.
In other recent news, Zeta Global announced a partnership with Yahoo to enhance email marketing strategies using AI-powered personalized emails. This comes alongside Zeta's financial developments, including a public offering of 11 million shares of its Class A common stock and securing a $550 million loan facility for debt refinancing.
In terms of earnings and revenue, the company increased its third-quarter 2024 expectations, projecting a minimum revenue of $255 million and an adjusted EBITDA of at least $50.2 million.
Analysts at Needham, Canaccord Genuity, and Craig-Hallum have responded positively, raising their stock price targets for Zeta Global while maintaining a Buy rating.
InvestingPro Insights
InvestingPro data and tips provide a deeper dive into Zeta Global Holdings Corp's financial health and market performance. According to InvestingPro, four analysts have recently revised their earnings upwards for the upcoming period, which could indicate a positive shift in the company's financial trajectory. Additionally, Zeta Global has demonstrated a high return over the last year and its liquid assets exceed short-term obligations, suggesting a solid financial foundation for handling its liabilities.
From a market perspective, Zeta Global has been trading near its 52-week high, with a price close to $28.94, and has seen a significant price uptick over the last six months. The company is trading at a high Price / Book multiple of 30.7, which may reflect investor confidence in its assets and future growth potential. Despite not being profitable over the last twelve months, analysts predict the company will be profitable this year, providing a potential upside for investors.
For those looking for more detailed analysis, there are additional InvestingPro Tips available, which can be accessed for Zeta Global on the InvestingPro platform.
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