Street Calls of the Week
Investing.com - DA Davidson has reiterated its Buy rating on Zeta Global Holdings Corp (NYSE:ZETA) with a price target of $27.00, representing a valuation of approximately 4 times the company’s projected 2026 revenue. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $18 to $44, with the stock currently trading at $20.37.
The firm’s decision follows Zeta Global’s management update on progress toward its 2028 financial targets and the announcement of a new platform called Athena. This platform launch demonstrates the company’s continued innovation efforts aimed at capitalizing on opportunities in the marketing cloud replacement cycle and performance-based advertising growth. The company’s strong execution is reflected in its impressive 40.6% revenue growth and healthy 60.9% gross profit margin over the last twelve months.
Zeta Global’s stock initially rose 7% on Wednesday following these positive developments, but subsequently reversed course and closed down 1% by the end of the trading session. The price movement suggests mixed investor reaction to the company’s announcements.
DA Davidson expressed increased confidence in Zeta Global’s business fundamentals following the company update. The maintained $27 price target reflects the firm’s positive outlook on Zeta’s growth trajectory and market positioning.
The rating reaffirmation comes as Zeta Global continues to develop its platform capabilities at what DA Davidson describes as "the convergence of the marketing cloud replacement cycle and ramping performance based advertising."
In other recent news, Zeta Global Holdings Corp has announced its acquisition of Marigold’s enterprise marketing software business for up to $325 million. This acquisition includes several products such as Marigold Loyalty, Cheetah Digital, and Selligent, among others. The deal is valued at approximately 2 times revenue and less than 10 times EBITDA, aligning with the company’s financial profile. Following this announcement, DA Davidson reiterated its Buy rating on Zeta Global, maintaining a $27.00 price target.
Additionally, Truist Securities reiterated its Buy rating, keeping a $34.00 price target, and later increased it to $36.00 based on the company’s long-term growth outlook. Needham also maintained its Buy rating, raising its price target from $20.00 to $25.00, highlighting Zeta’s significant AI advancements, including the new Athena Conversational SuperIntelligent Agent. These developments come after Zeta’s investor and analyst day presentations, where the company extended its growth targets through 2030. The focus on AI and strategic acquisitions positions Zeta Global for continued growth, according to analysts.
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