DA Davidson maintains Buy on Zeta Global with $42 target

On Monday, DA Davidson reiterated its Buy rating and $42.00 price target for Zeta Global Holdings Corp (NYSE: ZETA), emphasizing the company’s potential ahead of its fourth-quarter earnings report. The firm’s analyst, Clark Wright, highlighted Zeta Global as a top pick in the sales and marketing sector for 2025, suggesting that the stock is currently undervalued. This assessment aligns with InvestingPro data, which shows analyst targets ranging from $23 to $45, with the stock currently trading at $18.19. Wright pointed to the upcoming earnings announcement scheduled for February 26, after the market closes, as a significant event for investors.

The analyst noted that while expectations for the fourth quarter are relatively low, the company’s introduction of financial targets for 2028 is expected to be a key factor for investors assessing the company’s long-term growth trajectory. The company has demonstrated strong growth potential, with InvestingPro data showing impressive revenue growth of nearly 30% in the last twelve months, reaching $901.4 million. DA Davidson’s valuation is based on 8 times the estimated 2025 sales for Zeta Global.

Zeta Global’s focus on data-driven marketing solutions positions it within an industry that leverages big data and analytics to optimize marketing strategies. The company’s technology and services are designed to help businesses acquire, grow, and retain customers more effectively. Financial metrics support this strong market position, with InvestingPro showing a robust gross margin of 60.26% and a healthy current ratio of 3.32, indicating solid operational efficiency and financial stability. Get access to 10+ additional exclusive ProTips and comprehensive analysis through the Pro Research Report.

The firm has been closely monitoring Zeta Global’s performance and investor sentiment, engaging in discussions with both the company and investors. These conversations have informed DA Davidson’s positive outlook on the stock.

Investors and market watchers will be looking towards the February 26 earnings report to gain insight into Zeta Global’s performance and its strategic plans for the coming years. The announcement of the 2028 financial targets will be particularly scrutinized as it will provide a clearer picture of the company’s ambitions and expected growth.

In other recent news, Zeta Global Holdings Corp has been the center of multiple developments. The company’s fourth quarter outlook is strong, according to Truist Securities, which maintained a Buy rating on Zeta Global shares. Truist’s confidence is rooted in Zeta Global’s impressive revenue growth and the company’s current valuation, which is significantly lower than its comparable companies.

In contrast, Goldman Sachs initiated coverage on Zeta Global with a neutral rating, pointing out potential medium-term risks, including the evolving landscape of privacy regulations and the possible decline in the value of proprietary data.

On the merger front, Zeta Global’s shares experienced a drop following the announcement that Omnicom will acquire The Interpublic Group of Companies (NYSE:IPG), Inc. Zeta Global expressed a positive outlook on the impact of the acquisition for the industry and itself.

In terms of platform usage, Zeta Global reported a significant 108% year-over-year increase in the use of its Zeta Marketing Platform during the Cyber Five period. Lastly, the company has been on a recovery path following a previous sell-off, with its stock witnessing an upswing of 42%.

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