On Tuesday, Zeta Global Holdings Corp (NYSE:ZETA) shares saw its price target increased by Roth/MKM from $33.00 to $44.00, while the firm maintained a Buy rating on the stock.
The upward revision follows Zeta's announcement of a significant beat on its third-quarter 2024 forecasts, which indicates a year-over-year revenue growth of at least 35%, or 30% when excluding variable political revenues.
The company has shown a rapid acceleration in its core organic growth, moving from the low-20% range to the low-30% range within the past six months. This growth spurt is partly attributed to the introduction of a new mobile offering unveiled at the recent Zeta Live user conference, which is expected to contribute to further growth.
Roth/MKM's analysis suggests that despite the strong performance indicators, Zeta Global's shares are still undervalued in the market. The firm's confidence in the company's growth trajectory and the potential of its new mobile offering has led to Zeta Global being named as Roth/MKM's Top Pick within the software sector.
Investors have responded positively to the news, with Zeta Global's shares experiencing an uptick following the announcement of the revised price target. The company's performance and strategic initiatives appear to be resonating well with market analysts and investors alike, as reflected in the stock's bullish outlook.
In other recent news, Zeta Global Holdings Corp has experienced a series of stock target upgrades from various firms such as DA Davidson, B.Riley, Needham, Craig-Hallum, and Truist Securities, all maintaining a Buy rating.
This follows the company's annual customer conference, Zeta Live, where it announced new product offerings and platform enhancements. Zeta Global also reported a 33% rise in year-over-year revenue for the second quarter of 2024 and increased its third-quarter expectations.
Moreover, the company has made significant financial moves, including a public offering of 11 million shares of its Class A common stock and securing a $550 million loan facility for debt refinancing. On the product front, Zeta Global launched the Zeta Media Engine in collaboration with Snowflake (NYSE:SNOW) and a new intelligent mobile solution, expanding its AI Agents lineup to improve consumer interactions and business outcomes.
These recent developments underscore Zeta Global's strong positioning and growth trajectory, with analysts expressing confidence in the company's ability to establish itself as a leading entity in the Software as a Service sector.
The company's new product offerings are expected to expand its total addressable market, and ongoing developments with industry partners are cited as reasons for optimism about the company's future performance.
InvestingPro Insights
Zeta Global's recent performance aligns with several InvestingPro metrics and tips, providing additional context to the company's growth story. The company's revenue growth of 25.16% over the last twelve months and an impressive 32.61% in the most recent quarter underscore the rapid acceleration mentioned in the article. This growth trajectory is further supported by an InvestingPro Tip indicating that Zeta has achieved a "High return over the last year," with a staggering 257.25% price total return over the past year.
The article's mention of Zeta's shares being undervalued is interesting when considering the InvestingPro data. While the company's Price / Book ratio of 31.64 suggests a high valuation, analysts predict that Zeta will be profitable this year, potentially justifying the premium. Moreover, the InvestingPro Fair Value of $19.52 and the analyst target of $34.50 provide additional perspectives on the stock's valuation.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Zeta Global, which could provide valuable insights into the company's financial health and market position.
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