DA Davidson reiterates Buy rating on Zeta Global stock, maintains $25 price target

Published 22/07/2025, 15:34
DA Davidson reiterates Buy rating on Zeta Global stock, maintains $25 price target

Investing.com - DA Davidson has reiterated its Buy rating on Zeta Global Holdings Corp (NYSE:ZETA) while maintaining its $25.00 price target, representing a valuation of approximately 4 times the company’s projected 2026 revenue. The company, which has demonstrated impressive revenue growth of 40% in the last twelve months, is currently trading below its InvestingPro Fair Value.

The firm cited a "better than feared macro backdrop" and Zeta’s conservative second-quarter 2025 guidance as supporting factors for what could become the company’s 16th consecutive quarter of beating expectations and raising guidance. This optimism is supported by the company’s recent performance, with an 11.3% price return in the past week and a strong financial health score of "GOOD" according to InvestingPro analysis.

DA Davidson identified potential upside drivers for Zeta Global, including ramping agency contributions and scaled customer ARPU (Average Revenue Per User) growth in the current quarter.

The research firm noted that Zeta’s growth equation this quarter is likely more weighted toward upselling existing customers rather than acquiring new logos, which it attributed to current go-to-market initiatives.

DA Davidson characterized Zeta Global as an "undervalued disrupter" in its analysis, supporting its continued Buy recommendation on the marketing technology company’s stock.

In other recent news, Zeta Global Holdings Corp reported its Q1 2025 earnings, showing a mixed financial performance. The company achieved a revenue of $264 million, exceeding the forecast of $254.43 million. However, its earnings per share (EPS) did not meet expectations, coming in at -0.1 compared to the anticipated 0.12. Additionally, Zeta Global announced the retirement of its co-founder, John Sculley, from his roles as Vice Chairman and Board member. Meanwhile, William Blair reiterated its Outperform rating for Zeta Global, highlighting strong fundamentals and growth opportunities. Needham maintained a Buy rating but adjusted the price target from $25 to $20, citing a broader recalibration in software valuations. KeyBanc maintained a Sector Weight rating, reflecting a neutral stance, following Zeta Global’s recent earnings call. CEO David Steinberg hinted at potential acquisition interest during the call, amid the company’s ongoing share repurchase efforts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.