Zeta Global falls as Barclays downgrades rating on tough revenue growth in FY25

Zeta Global Holdings

18/10/2024 17:26

** Shares of marketing technology firm Zeta Global Holdings
 ZETA.N  down as much as 7.77% to $27.67, set for worst day
since Jul. 24
    ** Brokerage Barclays cuts rating to "equal-weight" from
"overweight", maintains PT $28
    ** Expects ZETA's estimated H2 revenue growth in FY25 could
slow down as it laps election marketing spend from 2H24
    ** Says company's current political revenue contribution
forecast for FY24 could be "conservative" 
    ** Believes estimates for FY25 agency spend per brand growth
"achievable but optimistic" and require significant brand
expansion within already ramped agency partner customers
    ** "We think that investors would be disappointed if
management does not confirm a strong ramp for the existing
partners with either new brands or direct revenues" - Barclays
analyst Ryan MacWilliams
    ** Company is set to report Q3 results on Nov. 11
    ** 11 of 13 brokerages rate the stock "buy" or higher and
two "hold", with a median PT of $35.50
    ** Up to Thursday's close, stock has risen ~240% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))