Investing.com - William Blair reiterated his Outperform rating on Zeta Global Holdings Corp (NYSE: ZETA ) on Monday, citing strong fundamentals and growth opportunities. According to InvestingPro data, the company showed impressive momentum last week with a return of 12.54%.
The investment firm highlighted its recent investor meetings with Zeta's CFO Chris Greiner and Senior Vice President of Investor Relations Matt Pfau, noting that investors showed great interest in the company's consistent execution and growth potential. This interest appears to be well-founded, as sales have increased by 40.36% in the last twelve months.
William Blair noted that management is optimistic about the fundamentals and pointed to stable demand as brands look to modernize their marketing technology stacks, improve customer engagement and integrate AI into their marketing strategies.
The company believes that Zeta shares are currently undervalued, trading at around 11 times EBITDA and 21 times free cash flow, despite the company having organic revenue growth of over 20% and increasing EBITDA margins of over 20%.
William Blair pointed out that further execution and upside to estimates will be key factors in driving the P/E ratio higher, particularly given the significant growth opportunities open to Zeta Global going forward.
In other recent news, Zeta Global Holdings Corp. reported its first quarter 2025 results and showed mixed financial performance. The company achieved revenue of USD 264 million, exceeding the forecast of USD 254.43 million, an increase of 36% compared to the previous year. However, earnings per share (EPS) fell short of expectations, coming in at -0.1 versus the forecast 0.12. Meanwhile, Zeta Global co-founder John Sculley announced his resignation from his positions as vice chairman and board member, but will continue to serve as vice chairman emeritus. On the analyst side, Needham maintained a Buy rating on Zeta Global, but lowered the price target from $25 to $20, citing a broader recalibration of software valuations. KeyBanc analysts maintained their Sector Weight rating on the company, remaining Neutral despite strong fundamental performance and potential takeover interest. In addition, Zeta Global is actively buying back shares, underlining confidence in the company's financial health. These developments underline the company's ongoing efforts to improve its profitability and strategic position in the market.
