Needham maintains $43 target on Zeta Global shares post-earnings

Published 26/02/2025, 13:32
Needham maintains $43 target on Zeta Global shares post-earnings

On Wednesday, Needham reaffirmed their positive stance on Zeta Global Holdings Corp (NYSE: ZETA) with a Buy rating and a $43.00 price target. According to InvestingPro data, analyst targets for ZETA range from $18 to $45, with 11 analysts recently revising their earnings estimates upward for the upcoming period. The endorsement follows Zeta Global’s release of robust fourth-quarter earnings, which demonstrated the company’s ability to overcome challenges and continue its growth trajectory.

Zeta Global’s fourth-quarter performance was highlighted as a testament to the company’s resilience and strategic execution. The firm successfully navigated through a period of adversity without letting it hinder their progress, culminating in a strong quarterly report. With revenue growth of nearly 30% in the last twelve months and a robust gross profit margin of 60%, the company has demonstrated strong operational execution. The acquisition of LiveIntent played a significant role in bolstering Zeta’s results, adding to its already impressive organic growth.

The company’s outlook for the fiscal year 2025 surpassed consensus expectations, and analysts at Needham consider the targets set for 2028 to be both attainable and likely to be exceeded. Despite an unexpected dip in after-hours trading, Needham’s analysts view the current weakness as an opportunity for investors to buy into Zeta Global’s stock. InvestingPro analysis shows the stock has delivered an impressive 99% return over the past year, despite recent volatility. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.

The research firm’s confidence in Zeta Global is rooted in the company’s potential to maintain its momentum of surpassing expectations and raising forecasts throughout 2025. This optimism is further supported by Zeta’s strategic brand expansion within the agency channel and the anticipated growth driven by its GenAI technology, which is expected to increase consumption revenues. The company maintains strong financial health with a current ratio of 3.32 and more cash than debt on its balance sheet, positioning it well for future growth opportunities.

In other recent news, Zeta Global Holdings Corp reported strong fourth-quarter results for the fiscal year 2024, with revenue reaching $315 million, marking a 50% year-over-year growth and surpassing Wall Street’s expectations. Despite this revenue surge, the company’s earnings per share (EPS) of $0.06 fell short of the forecasted $0.224. Bank of America Securities responded to these results by raising Zeta Global’s stock price target to $32, maintaining a Buy rating, citing the company’s solid execution and market share gains in the marketing and ad-tech sector. Looking ahead, Zeta Global has provided guidance for fiscal year 2025, projecting revenues of approximately $1.24 billion, representing a 23% year-over-year increase, which exceeds the consensus estimate. The company also achieved its first positive GAAP net income as a public company, reporting $15.2 million. Analysts noted Zeta’s strategic focus on AI-driven marketing solutions and successful product launches as key contributors to its performance. Additionally, Zeta Global’s acquisition of LiveIntent has been fully integrated, further enhancing its product offerings and customer value.

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