Scott Berg, an analyst from Needham, reiterated the Buy rating on Zeta Global Holdings Corp. The associated price target remains the same with $25.00.
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Scott Berg has given his Buy rating due to a combination of factors including Zeta Global Holdings Corp’s impressive third-quarter financial performance. The company demonstrated a notable acceleration in its organic revenue growth rate, reaching 28%, up from 27% in the previous quarter. This growth was supported by strong sales and demand trends, particularly in the telecom sector, which is now experiencing a growth rate exceeding 20%.
Additionally, Zeta Global added a significant number of new scaled customers, and the average revenue per user for these customers increased by 13%, excluding political revenues. This indicates the effectiveness of the company’s Zeta One cross-sell strategy. Furthermore, the management’s initial guidance for fiscal year 2026, projecting a 21% organic revenue growth, surpassed market expectations, which were estimated to be between 19% and 20%. Despite a minor shortfall in LiveIntent revenues, the overall positive outlook and strategic initiatives justify the Buy rating.