Bank of America Securities analyst Koji Ikeda maintained a Buy rating on Zeta Global Holdings Corp on October 10 and set a price target of $24.00.
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Koji Ikeda has given his Buy rating due to a combination of factors that highlight Zeta Global Holdings Corp’s potential for durable and profitable growth. The company has demonstrated a strong financial model, with management confident in achieving a 20% annual revenue growth rate through 2028. Additionally, Zeta aims for a significant expansion in EBITDA margins to 30% by 2030 and a free cash flow conversion rate of 70%, aligning with mature SaaS peers. This strategic focus on profitable growth positions Zeta attractively in the market, especially as investor interest shifts towards sustainable growth models.
Moreover, Zeta’s growth strategy is supported by its One Zeta initiative, which has successfully increased multi-use case adoption among its customer base. The company’s Net Revenue Retention (NRR) rates are impressive, with a stable 115% for scaled customers and an improvement to 95% for non-scaled customers. The introduction of the Athena AI offering is expected to further enhance customer engagement and platform stickiness. These factors, combined with the potential for upward revisions in Street estimates, suggest a positive rerating cycle for Zeta’s stock, reinforcing the Buy rating.
In another report released on October 10, D.A. Davidson also reiterated a Buy rating on the stock with a $27.00 price target.
ZETA’s price has also changed dramatically for the past six months – from $11.710 to $18.400, which is a 57.13% increase.