Update shared on03 Oct 2025
Fair value Decreased 2.83%Analysts have adjusted their price target for Zeta Global Holdings down slightly, from $27.27 to $26.50. This reflects updated expectations around fair value, despite continued optimism about the firm's growth potential and expanding agency relationships.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight the company’s expanding role as a crucial driver within its broader growth strategy. This reinforces confidence in Zeta Global’s long-term prospects.
- The agency business is increasingly seen as a misunderstood asset, with potential to meaningfully exceed current revenue estimates for 2025 and 2026.
- Continued success in winning new client partnerships, along with the deepening of relationships with existing agencies, supports expectations for sustained top-line growth.
- Optimism persists that positive execution in both product and agency channels could justify higher valuations in the future, even as near-term target adjustments occur.
- The adjustment in price targets, while still positive, reflects a more measured outlook on fair value. This suggests some caution about the pace of execution or possible macroeconomic headwinds.
- Uncertainty remains regarding the agency business’s ability to consistently deliver upside, as this component has historically been overlooked or misunderstood by the market.
- Some analysts warn that while growth remains robust, there are risks tied to successfully onboarding new clients at the rate projected in prior estimates.
- There is ongoing scrutiny around whether Zeta Global can translate its expanding agency footprint into tangible improvements in margins and profitability.
What's in the News
- Zeta Global announced its Generative Engine Optimization (GEO) solution, enhancing the Zeta Marketing Platform to help brands improve visibility and accuracy across AI-powered search platforms such as ChatGPT, Gemini, and Claude. (Product-Related Announcements)
- The company raised its earnings guidance for the third quarter and full year 2025, projecting revenue growth of 22% to 23% for Q3 and 25% to 26% for the full year. (Corporate Guidance: Raised)
- Zeta Global's board authorized a new share repurchase program of up to $200 million in Class A common stock, valid through December 31, 2027. (Buyback Transaction Announcements)
- From April 1, 2025, to July 25, 2025, Zeta repurchased over 3.2 million shares for $43.93 million and completed the repurchase of 5.67 million shares under an existing buyback plan. (Buyback Tranche Update)
- Zeta Global recently hosted its Analyst/Investor Day and updated stakeholders on strategic initiatives and financial outlook. (Analyst/Investor Day)
Valuation Changes
- Consensus Analyst Price Target: Lowered from $27.27 to $26.50, reflecting a modest decrease in estimated fair value.
- Discount Rate: Increased slightly from 8.54% to 8.59%, signaling a marginally higher risk premium in the valuation model.
- Revenue Growth: Remains essentially unchanged at approximately 18.34%.
- Net Profit Margin: Improved from 5.56% to 5.87%, indicating slightly better margin expectations going forward.
- Future P/E: Lowered from 78.25x to 72.10x, reflecting more conservative expectations for earnings multiples.
Disclaimer
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