- Oppenheimer analyst Brian Schwartz upgraded Zeta Global Holdings Corp (NYSE:ZETA) to Outperform from Perform with a $20 price target (49.5% upside).
- Zeta is an omnichannel data-driven cloud platform offering enterprises with consumer intelligence and marketing automation software.
- Schwartz saw a "substantial upside from current prices" based on valuation, improving fundamentals, and transparency.
- Zeta's revenue growth and EBITDA margin expansion "should propel the business above the Rule-of-40 this year."
- Schwartz was also bullish on the company's increasing customer penetration and the Zeta Marketing Platform becoming a strategic platform for digital transformation and privacy compliance.
- He believes the company's installed-base growth could sustain or accelerate overall growth above expectations.
- Zeta's Q4 FY21 revenue of $135.00 million, up 18% Y/Y, beat the consensus of $122.18 million.
- Chair and CEO David A. Steinberg said, "Disruption in the digital ecosystem is forcing brands to reevaluate their marketing technology investments and fueling the demand for data-driven, identity-based marketing. We are just beginning to scratch the surface of our rapidly growing, multi-billion-dollar addressable market, and we believe in our ability to achieve our Zeta 2025 targets."
- "Throughout 2021, we grew scaled customer count, increased scaled customer ARPU, improved Direct Platform mix, expanded margins, and generated record cash flow, which speaks to the culture of execution we are building at Zeta," said CFO Chris Greiner.
- Price Action: ZETA shares traded higher by 10.50% at $13.37 on the last check Thursday.
