On Monday, Oppenheimer has increased its stock price target for Zeta Global Holdings Corp (NYSE:ZETA), a data-driven marketing technology company, from $18.00 to $20.00, while reiterating an Outperform rating on the stock. The firm anticipates the company to continue its robust performance into the second half of 2024, propelled by a combination of cyclical tailwinds and improving market conditions.
The firm's positive stance is based on the expectation that Zeta Global will sustain its operating profile as a unique enterprise software vendor, characterized by reaccelerating revenue growth and consistent quarterly performance that surpasses expectations.
According to the firm, these outcomes are likely to be driven by an upswing in market dynamics and cyclical factors, which could lead to an increase in the company's share price.
For the upcoming second-quarter earnings, Zeta Global is expected to report favorable results. This optimism is rooted in a strong and persistent demand for marketing orchestration and automation technologies.
Moreover, the ongoing consolidation of vendors within the industry, more favorable year-over-year comparisons, enhanced sales efficiency, and a spike in messaging volumes due to one-time events such as the U.S. election and the Olympics are anticipated to contribute to the company's positive performance.
The firm's analyst highlighted the belief that Zeta Global is well-positioned to continue its growth trajectory and gain a larger market share over the long term. The raised price target reflects this confidence in the company's potential to be a solid growth compounder in the future.
In other recent news, Zeta Global announced a partnership with RallyPoint to enhance support for the military community using its AI capabilities. The collaboration is expected to improve member engagement and communication channels for RallyPoint. Zeta Global also launched the Zeta Economic Index (ZEI), a measure of the US economy's health, based on proprietary data and Generative AI.
RBC Capital initiated an Outperform rating on Zeta Global, highlighting its strategic position in the market. BofA Securities raised its price target for Zeta Global to $20.00, maintaining a Buy rating on the stock. Needham also upgraded the price target for Zeta Global from $18.00 to $20.00, citing the company's ongoing innovation and strong demand.
Zeta Global has also welcomed Imran Khan, a renowned figure in the technology investment sector, to its Board of Directors. Analysts have projected strong financial health for Zeta Global in 2024, with estimated revenue at $897.1 million and an EBITDA estimate of $170.2 million. These recent developments indicate a promising trajectory for Zeta Global in the digital marketing sector.
InvestingPro Insights
Following the upbeat outlook from Oppenheimer, real-time data and InvestingPro Tips further illuminate the investment landscape for Zeta Global Holdings Corp (NYSE:ZETA).
With a market capitalization of $3.75 billion, Zeta's growth narrative is underpinned by a 23.1% increase in revenue over the last twelve months as of Q1 2024, showcasing a strong upward trajectory in its financial performance. This is complemented by a significant 114.29% return on the stock over the past year, reflecting investor confidence and market recognition of the company's value.
InvestingPro Tips suggest that Zeta's liquid assets surpassing short-term obligations and a moderate level of debt paint a picture of a financially healthy company. Analysts have also revised their earnings upwards for the upcoming period, indicating a positive sentiment towards the company's future profitability. Moreover, the company is trading at a high Price / Book multiple of 19.55, which could be indicative of the market's high expectations for future growth.
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