Tuesday, May 07, 2024 - Zeta Global (NYSE:ZETA) Holdings Corp (NYSE: ZETA) has seen its price target increased to $18 from $13 by Needham, with a reiterated Buy rating. The firm's decision follows Zeta's impressive performance at the beginning of Fiscal Year 2024, which included a record number of high-value customer acquisitions and a raised full-year outlook.
Zeta Global's robust first-quarter results have led to this positive adjustment. The company successfully added 13 new customers, each contributing over $1 million in the quarter. This achievement was attributed to the sales force's productivity exceeding expectations. Additionally, the company witnessed accelerated growth in its agency business and saw the auto and insurance verticals return to growth sooner than anticipated.
The management team at Zeta Global expressed confidence that the first quarter likely represents the lowest point for direct platform spending, indicating that future revenue increases should lead to improved gross margins. This is expected to showcase Zeta's ability to achieve incremental leverage. According to Needham, these factors contribute to the belief that there is still potential for further upside to the company's Fiscal Year 2024 performance.
The raised guidance by Zeta's management underscores a strong start to the year and suggests that the company is on a trajectory for continued growth. Needham's outlook remains positive, citing multiple avenues for Zeta Global to surpass the already elevated expectations for Fiscal Year 2024. The analyst firm maintains that Zeta's effective execution strategy makes it a compelling investment.
InvestingPro Insights
Following the upbeat assessment by Needham, data from InvestingPro further illuminates Zeta Global Holdings Corp's (NYSE: ZETA) financial landscape and market performance. The company boasts a market capitalization of $2.84 billion, reflecting its significant presence in the sector. A noteworthy aspect of Zeta's financial health is its revenue growth, with a 23.31% increase over the last twelve months as of Q4 2023, indicating a strong upward trajectory in its business operations.
InvestingPro Tips highlight several positive indicators for Zeta Global. Analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's future profitability. Additionally, Zeta has delivered a strong return over the last three months, with a 35.28% price total return, and is trading near its 52-week high, at 99.11% of the peak price, signaling robust investor sentiment.
For investors seeking more in-depth analysis and additional insights, there are 10 more InvestingPro Tips available at: https://www.investing.com/pro/ZETA. Interested readers can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data and expert analysis to inform their investment decisions.
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