On Tuesday, BofA Securities updated its outlook on Zeta Global Holdings Corp (NYSE: ZETA), increasing the price target to $18.00 from the previous $15.00, while reaffirming a Buy rating on the stock. The firm's decision follows Zeta Global's announcement of its first-quarter results for 2024, which exceeded expectations. Zeta Global reported revenue of $194.9 million, surpassing the anticipated $187.1 million, and an adjusted EBITDA of $30.5 million, which was higher than the forecasted $29.0 million.
The company's performance in the first quarter of 2024 has sparked discussions regarding its identity as either a marketing platform or an advertising one. However, the results have demonstrated Zeta Global's proficiency in both areas. Since its initial public offering in June 2021, Zeta Global has consistently outperformed many of its small to mid-cap (SMID-cap) software peers, which have often reported misses or downward guidance.
Zeta Global's practice of guiding for multiple quarters at a time has been highlighted as an indicator of the company's strong visibility and confidence in its operations. This approach is relatively uncommon among its peers, further underscoring Zeta Global's robust quarterly performance.
In light of these results, BofA Securities has reiterated its Buy rating and increased the price objective to $18, citing the company's strong execution and upwardly revised forecasts. The upgraded price target reflects the firm's confidence in Zeta Global's continued success and its ability to exceed market expectations.
InvestingPro Insights
Zeta Global Holdings Corp (NYSE: ZETA) has been making waves with its impressive first-quarter performance in 2024, and the optimism is echoed in the InvestingPro community. With analysts revising their earnings upwards for the upcoming period, it's clear that Zeta Global's financial health is on an upward trajectory. This is further supported by the company's strong return over the last year, including a significant 55.88% year-over-year price total return.
InvestingPro Tips reveal that Zeta Global's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position. This is an important factor for investors looking for stability in a company's financial structure. Moreover, Zeta Global's moderate level of debt, in contrast with its non-profitability over the last twelve months, presents a mixed financial picture that is leaning towards growth as analysts predict profitability this year.
From a valuation standpoint, Zeta Global's market cap stands at $2.84 billion, with a high Price / Book multiple of 15.72, reflecting investor confidence and a premium placed on the company's assets. The company's revenue growth is also notable, with a 23.31% increase over the last twelve months as of Q4 2023, indicating a healthy expansion of its business. However, the negative P/E Ratio of -10.82 and adjusted P/E Ratio of -15.88 highlight the current lack of profitability, which investors hope will turn around as forecasted.
For those looking to delve deeper into Zeta Global's potential, InvestingPro offers additional insights and metrics. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further InvestingPro Tips that could guide investment decisions. Currently, InvestingPro lists several more tips that could be valuable to investors considering Zeta Global.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.