Zuora upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Adam Hotchkiss upgraded Zuora to Buy from Neutral with a price target of $12, up from $10. Heading into fiscal 2025, the analyst thinks estimates are “de-risked in a stabilizing end market,” while the company’s new product uptake presents upside risk that is not currently modeled. Zuora’s improving profitability profile is both sustainable and increasingly a source of valuation support, the analyst tells investors in a research note. The firm sees current shares levels as a favorable entry point given the likely stabilization in fundamentals and positive risk/reward skew.