On Tuesday, Oppenheimer adjusted its outlook for Zeta Global Holdings Corp (NYSE:ZETA), increasing the stock's price target to $18.00, up from the previous target of $14.00. The firm retained an Outperform rating on the shares, signaling confidence in the company's performance.
Zeta Global reported a robust first quarter, marked by consistent execution and results that surpassed estimates, which also led to an upward revision of future guidance. The company demonstrated a significant "beat and raise" pattern, with impressive metrics for acquiring new customers. Although the gross margin exceeded expectations for the quarter, there is an anticipation of a potential slowdown in margin expansion as Zeta Global intensifies efforts in its agency business.
The company's solid performance in the first quarter supports the view that it is well-managed, with increasing estimates suggesting a strong trajectory toward surpassing its $1 billion revenue goal set for 2025. The outlook for Zeta Global in 2024 remains positive, with diminishing headwinds in the Auto and Insurance segments, favorable growth momentum from advocacy and election-related spending, and enhanced sales productivity.
The revised price target reflects these developments, indicating a bullish stance on Zeta Global's prospects as the company continues to navigate the current fiscal year.
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