Analyst Scott Berg from Needham maintained a Buy rating on Zeta Global Holdings Corp and keeping the price target at $20.00.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Zeta Global Holdings Corp’s robust financial performance and growth potential. The company reported strong second-quarter results, with revenue exceeding expectations by 4%, and core revenues, excluding certain segments, showing a significant year-over-year increase of 27%. This growth is indicative of Zeta’s ability to expand its market presence despite broader economic challenges.
Furthermore, Zeta has demonstrated consistent improvement in its profit margins, with adjusted EBITDA margins increasing by 220 basis points year-over-year. This trend is expected to continue, potentially surpassing the 20% mark by fiscal year 2025. While there are concerns about the macroeconomic slowdown affecting demand for certain products, the company’s strong sales execution and upcoming AI product launches are seen as potential drivers for future growth, providing confidence in Zeta’s long-term prospects.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $28.00 price target.