Earnings Update: Here's Why Analysts Just Lifted Their Zeta Global Holdings Corp. (NYSE:ZETA) Price Target To US$29.08

Shareholders of Zeta Global Holdings Corp. (NYSE:ZETA) will be pleased this week, given that the stock price is up 18% to US$23.99 following its latest second-quarter results. The results were mixed overall, with revenues slightly ahead of analyst estimates at US$228m. Statutory losses by contrast were 2.4% larger than predictions at US$0.16 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Zeta Global Holdings

Taking into account the latest results, the most recent consensus for Zeta Global Holdings from eleven analysts is for revenues of US$926.3m in 2024. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 32% to US$0.45. Before this latest report, the consensus had been expecting revenues of US$900.5m and US$0.37 per share in losses. While this year's revenue estimates increased, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target rose 36% to US$29.08, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Zeta Global Holdings at US$33.00 per share, while the most bearish prices it at US$19.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Zeta Global Holdings'historical trends, as the 27% annualised revenue growth to the end of 2024 is roughly in line with the 23% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although Zeta Global Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zeta Global Holdings analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Zeta Global Holdings you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com