Zuora initiated with a Buy at Lake Street

Lake Street analyst Jacob Stephan initiated coverage of Zuora with a Buy rating and $11 price target. Zuora "offers investors one of he best ways to play the rapidly growing subscription economy," contends Lake Street, which said Zuora has "established itself as both the thought and product leader in the high growth subscription economy" and is the "partner of choice when launching or scaling a subscription business." The firm acknowledges some discount to the peer group is warranted due to the slower growth rate, but it believes the negatives have largely been priced into shares after Zuora recently reset FY24 growth expectations.