ZETA: Extended Growth Targets Through 2030 Will Drive Stronger Profit Margins

Analysts have raised their fair value estimate for Zeta Global Holdings from $28.27 to $29.36 per share, citing growing confidence in the company's accelerated revenue growth, significantly improved profit margins, and extended long-term targets that support a higher price outlook.

Analyst Commentary

Bullish analysts remain optimistic about Zeta Global Holdings, highlighting several factors driving a more favorable outlook for the company. Their perspectives focus on improved financial execution, growth durability, and company positioning within its market.

• Bullish analysts cite increased confidence in Zeta Global's ability to outperform organic revenue, EBITDA, and free cash flow estimates over the long term. This reflects strong execution and demand fundamentals.
• The company's extension of its "attractive growth" targets, maintaining over 20 percent growth and enhanced margin targets through 2030, is viewed as a positive signal of management's conviction and the runway for sustained performance.
• There is optimism about the continued success in acquiring new customers and deepening relationships within existing agency channels, supporting upside potential in future revenue projections.
• Analysts also point to Zeta Global’s significant improvements in profit margins and free cash flow conversion, which contribute to a higher overall valuation and reinforce expectations for ongoing profitability enhancements.

• Bearish analysts observe that while the company’s agency business is promising, it remains a "misunderstood component of the narrative." This introduces uncertainty regarding the consistency of this revenue stream.
• There is some caution around the high expectations built into the long-term growth and margin targets. Failure to deliver could negatively impact the share price outlook.
• Continued reliance on expanding agency relationships brings execution risk, particularly if new client wins or existing customer expansions do not materialize at the projected pace.

What's in the News

• Zeta Global Holdings raised its 2025 earnings guidance and now projects full-year revenue between $1,273 million and $1,276 million, up from prior guidance, representing a 27% year-over-year growth rate. (Corporate Guidance)
• The company provided new earnings guidance for 2026 and expects revenue of $1,540 million, which would be a 21% increase above the updated 2025 outlook. (Corporate Guidance)
• Zeta Global unveiled Athena by Zeta, an AI-powered superintelligent agent designed to personalize and automate marketers' digital workspaces by delivering adaptive experiences, instant answers, and smart decision support through agentic apps integrated with the Zeta Marketing Platform. (Product Announcement)
• The company introduced Generative Engine Optimization (GEO), a tool to help brands monitor and optimize their visibility within AI-powered search engines and platforms. This tool addresses the shift from traditional search to AI-driven answers. (Product Announcement)
• Zeta reaffirmed its previously issued third-quarter and full-year 2025 guidance as of August 5, 2025. (Corporate Guidance)

Valuation Changes

• The Fair Value Estimate has risen slightly from $28.27 to $29.36 per share, reflecting more optimistic expectations for the company’s growth and profitability.
• The Discount Rate has declined modestly from 8.58% to 8.53%, indicating a marginally lower perceived risk profile for Zeta Global Holdings.
• The Revenue Growth assumption has increased from 17.15% to 17.88%, supporting the view that the company’s top-line growth prospects have improved.
• The Net Profit Margin projection has climbed significantly from 6.05% to 24.46%, which signals expectations of much stronger long-term profitability.
• The Future Price-to-Earnings (P/E) Ratio has fallen substantially from 76.90x to 19.13x, suggesting the company is now perceived as a better value relative to its future earnings potential.