Zuora price target lowered to $12 from $13.50 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Zuora to $12 from $13.50 and keeps a Buy rating on the shares. The firm notes Zuora delivered Q4 subscription revenue moderately ahead of expectations with OPM and profitability solidly better. As preannounced, ARR and DBNRR came in below expectations due partly to one large churn customer that was yet to go live. The company continues to face pressures from the macro environment, resulting in longer deal cycles and increased budget scrutiny, Craig-Hallum adds. Contrary to these near-term headwinds, the firm was encouraged to hear management share that a number of large customers are making multi-year commitments with Zuora, as evident in its +19% year-over-year RPO growth for the quarter.