On Thursday, Truist Securities maintained a positive stance on Zeta Global Holdings Corp (NYSE:ZETA) shares, with analyst Terry Tillman reiterating a Buy rating and a $42.00 price target. According to InvestingPro data, analysts' price targets range from $23 to $45, with a strong consensus recommendation of 1.71 (where 1 is Strong Buy and 5 is Strong Sell).
The endorsement follows recent investor meetings hosted by Truist, featuring Zeta's CEO David Steinberg, CFO Chris Greiner, and SVP of Investor Relations Matt Pfau. The discussions covered a range of topics, from the company's serviceable market opportunity based on its existing customer base to financial model considerations and updates on customer engagements.
Tillman highlighted the potential for Zeta Global to continue its trend of exceeding expectations and raising future guidance as it prepares to unveil an updated long-term target model framework. The company's impressive revenue growth of nearly 30% year-over-year and "GOOD" overall financial health score from InvestingPro support this optimistic outlook. The analyst's confidence is also bolstered by the company's current valuation, which he notes is significantly lower than its comparable companies and the broader Software (ETR:SOWGn) as a Service (SaaS) market.
During the meetings, Zeta's management shared insights into various customer updates, including opportunities that emerged from the Consumer Electronics Show (CES) and prospects with large advertising agency holding companies. Additionally, they discussed several product-related developments that could further support the company's growth trajectory.
Truist's reiterated Buy rating is rooted in the expectation that Zeta Global will maintain its momentum, particularly in the fourth quarter, and that the stock's current valuation presents an attractive entry point for investors. The firm's positive outlook on Zeta reflects a belief in the company's ability to capitalize on its market opportunities and deliver strong financial performance.
Investors and stakeholders in Zeta Global can look forward to the company's upcoming presentation of its refreshed long-term financial goals, which may provide further insight into its growth strategies and operational targets. The company's leadership team remains focused on leveraging its SaaS platform to serve its customers effectively and drive shareholder value. With a strong current ratio of 3.32 and more cash than debt on its balance sheet, Zeta appears well-positioned for future growth.
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In other recent news, Zeta Global has been the subject of various developments.
Goldman Sachs initiated coverage on Zeta Global with a neutral rating, acknowledging the company's robust revenue growth of nearly 30% in the last twelve months. However, the firm also warned of potential medium-term risks, including the evolving landscape of privacy regulations and the possible decline in value of proprietary data.
In merger news, Zeta Global's shares experienced a drop following the announcement that Omnicom will acquire The Interpublic Group of Companies (NYSE:IPG), Inc. Zeta Global released a statement expressing a positive outlook on the impact of the acquisition for the industry and itself.
Zeta Global also experienced a significant 108% year-over-year increase in the use of its Zeta Marketing Platform during the Cyber Five period. This surge in platform engagement is attributed to brands seeking to deliver personalized marketing across various channels during the holiday shopping season.
The company has been on a recovery path following a previous sell-off, with its stock witnessing an upswing of 42%. In addition, Zeta Global refuted short seller claims and backed its data practices, reiterating its commitment to transparent communication with stakeholders. The company also reported a 42% year-over-year increase in Q3 2024 revenue to $268 million and a 59% rise in adjusted EBITDA to $54 million.
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