Zeta Global Holdings Receives Strong Buy Rating and Increased Price Target from Canaccord Genuity Analyst

Canaccord Genuity's David Hynes raised their price target on Zeta Global Holdings (NYSE: ZETA) by 30.8% from $13 to $17 on 2024/05/07. The analyst maintained their Strong Buy rating on the stock.

Hynes' update came in response to Zeta Global Holdings' Q1 2024 earnings report released on 2024/05/06, which showcased positive results. The company reported a loss per share of $0.23, missing the Zacks Consensus Estimate of $0.08 but still beating Q1 2023's loss per share of $(0.38) by 39.5%. Revenue for the quarter stood at $194.9 million, surpassing the Zacks Consensus Estimate of $187.1 million and exhibiting a 24% increase compared to Q1 2023's revenue of $157.6 million. Additionally, Zeta Global Holdings reported a 27% year-over-year increase in EBITDA, with a margin of 15.6%.

The positive Q1 results prompted management to raise its revenue expectations for FY 2024. Zeta Global Holdings now projects revenue in the range of $895 million to $905 million, with an EBITDA range of $170 million to $172 million, and an EBITDA margin of 18.8% to 19.2%. The company also anticipates free cash flow in the range of $75 million to $85 million.

Co-Founder, Chairman & CEO David A. Steinberg expressed confidence in the company's outlook, stating, "The actionable intelligence delivered by the Zeta Marketing Platform is fueling the acceleration in our business. Chief Marketing Officers are seeking modern marketing technology platforms, like the ZMP, that leverage Gen AI to drive top-line growth and improve operational efficiency, while protecting their data." CFO Chris Greiner added, "It was a strong start to the year, highlighted by an increase in visibility from new customer wins and the rapid expansion of existing customers, which is leading to a step up in revenue and Adjusted EBITDA guidance."

Following the release of Zeta Global Holdings' earnings report, several other analysts also updated their ratings and price targets for the stock. Morgan Stanley's Elizabeth Porter raised their price target by 5.9% to $18 and maintained their Strong Buy rating. Barclays' Ryan Macwilliams raised their price target by 20% to $18 and also maintained their Strong Buy rating. Additionally, Craig-Hallum's Jason Kreyer raised their price target by 46.7% to $22 and maintained their Buy rating.

Overall, 80% of top-rated analysts currently rate Zeta Global Holdings as a Strong Buy or Buy, while 20% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Since the release of Zeta Global Holdings' latest quarterly report, the stock price has risen by 18.3%. Year-over-year, the stock is up by an impressive 86%. During this period, Zeta Global Holdings has outperformed the S&P 500, which has seen a 25.4% increase.

Canaccord Genuity analyst David Hynes is highly regarded among Wall Street analysts, ranking in the top 11% out of 4,577 analysts with an average return of 6% and a win rate of 51.2%. Hynes specializes in the Communication Services, Technology, and Healthcare sectors.

Zeta Global Holdings Corp. is a company that provides consumer intelligence and marketing automation software. The Zeta Marketing Platform utilizes machine learning and opted-in data sets to analyze data points and predict consumer intent. The company also offers a Consumer Data platform that generates a single view of a consumer, including identity, profile characteristics, behaviors, and purchase intent. With product suites like Opportunity Explorer and CDP+, Zeta Global Holdings consolidates multiple databases with internal and external data feeds to organize data based on specific needs and performance metrics. The company was incorporated in 2007 and is headquartered in New York, NY.

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