Optimistic Buy Rating for Zeta Global Holdings Despite Conservative Guidance

Analyst Ryan MacDonald of Needham reiterated a Buy rating on Zeta Global Holdings Corp (ZETA – Research Report), reducing the price target to $25.00.

Ryan MacDonald has given his Buy rating due to a combination of factors, including Zeta Global Holdings Corp’s strong performance in the first quarter, highlighted by significant client additions. Despite the company’s shares declining in after-hours trading, MacDonald notes that the dip is due to conservative guidance for the latter half of FY25, rather than any fundamental issues with the company’s performance.
MacDonald points out that the management’s conservative approach is not due to any indication of reduced customer spending or demand. Instead, it is a strategic decision to blend the momentum from the first half of FY25 with a more cautious outlook for the second half. This conservative stance has led to a price target adjustment to $25, aligning with broader market trends in software valuations. However, MacDonald remains optimistic about Zeta’s ability to exceed expectations and maintain its growth trajectory, justifying the Buy rating.

MacDonald covers the Technology sector, focusing on stocks such as Yext, Udemy Inc, and Docebo. According to TipRanks, MacDonald has an average return of 4.1% and a 43.98% success rate on recommended stocks.

In another report released today, RBC Capital also maintained a Buy rating on the stock with a $25.00 price target.