On Tuesday, Canaccord Genuity maintained a Buy rating on Zeta Global Holdings Corp (NYSE:ZETA), with the price target being raised to $17.00 from the previous $13.00. The firm's analyst highlighted Zeta Global's recent strong performance, noting that the stock is now just crossing the 3x EV/R threshold based on the estimated revenues for the year 2025.
Zeta Global, a company specializing in data-driven marketing, is expected to achieve mid-20% revenue growth in 2024, along with nearly 10% free cash flow (FCF) margins. According to Canaccord Genuity, these figures position Zeta as one of the few software companies poised to deliver both profitable and accelerating growth in a challenging market.
The valuation of Zeta Global has increased, moving away from what was once considered an obvious bargain. However, Canaccord Genuity's stance is that Zeta's stock remains undervalued when considering the company's financial metrics and its consistent performance record.
The analyst also referred to the recent earnings call, indicating that Zeta Global's current momentum is expected to continue at least until the end of the year. This outlook reinforces the recommendation for value and growth at a reasonable price (GARP) investors to include Zeta Global in their portfolios.
InvestingPro Insights
With a recent Buy rating from Canaccord Genuity, Zeta Global Holdings Corp (NYSE:ZETA) is drawing attention with its promising financial outlook. According to real-time data from InvestingPro, Zeta’s market capitalization stands at a robust $2.84 billion, and despite a negative P/E ratio over the last twelve months, analysts have revised their earnings upwards for the upcoming period, signaling potential for a turnaround. Additionally, the company has enjoyed a high return over the last year, with a 55.88% price total return, and is trading near its 52-week high, reflecting strong investor confidence.
InvestingPro Tips further suggest that Zeta operates with a moderate level of debt and has liquid assets that exceed its short-term obligations—factors that contribute to the company's financial stability. Moreover, analysts are optimistic about Zeta's profitability, predicting the company will be profitable this year. For investors seeking more in-depth analysis, InvestingPro offers additional tips that can be found at https://www.investing.com/pro/ZETA. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 11 more InvestingPro Tips available, investors have a wealth of information to explore.
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