Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Needham maintained its Buy rating and $25.00 price target on Zeta Global Holdings Corp (NYSE:ZETA) following the company’s analyst day presentation. According to InvestingPro data, analyst targets range from $18 to $44, with the stock showing strong momentum, having gained over 53% in the past six months.
The research firm highlighted Zeta’s significant AI product announcements, including the new Athena Conversational SuperIntelligent Agent, which Needham views as having unique functionality and strong data emphasis compared to competitors’ offerings.
Needham noted that Zeta’s AI strategy demonstrates how marketing technology companies can succeed in the evolving AI landscape, with particular advantages against legacy technology firms that are "ill-positioned in the new AI paradigm."
The analyst day also revealed new expansion metrics that support Zeta’s potential to maintain a 20% annual growth rate for several years, along with the company’s first-ever financial targets for fiscal year 2030.
Needham considers ZETA shares attractive at current levels, trading at 3.4x FY26 revenues, with a "Rule of 40" framework for FY30 driven by expected improvements in free cash flow conversion.
In other recent news, Zeta Global Holdings Corp announced its agreement to acquire Marigold’s enterprise software business for up to $325 million. This acquisition is expected to expand Zeta’s customer base by incorporating over 100 global enterprise brands. The deal, which includes Marigold’s various software units such as Marigold Loyalty and Cheetah Digital, is anticipated to close by the end of 2025. Analysts have reacted positively to the announcement, with DA Davidson reiterating a Buy rating and maintaining a $27 price target. Similarly, Truist Securities upheld its Buy rating with a $34 price target, and Needham raised its target from $20 to $25. Canaccord Genuity also increased its price target to $30 from $28, while maintaining a Buy rating. Zeta management has assured that the acquisition will not affect its previously communicated financial guidance or buyback and dilution targets.
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