Evaluating Zuora: Insights From 10 Financial Analysts

In the preceding three months, 10 analysts have released ratings for Zuora (NYSE:ZUO), presenting a wide array of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Zuora, revealing an average target of $13.1, a high estimate of $15.00, and a low estimate of $10.00. This current average has increased by 1.55% from the previous average price target of $12.90.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Zuora among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zuora. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zuora compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Zuora's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Zuora's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Unveiling the Story Behind Zuora

Zuora Inc provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The firm offers a Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition. Its products include Zuora Billing, Zuora Revenue, Zuora Payments, Zephr, Zuora Platform, and other software that support and expand upon the core offerings. Geographically, it derives a majority of its revenue from the United States.

Zuora: Delving into Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Zuora's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.47% as of 30 April, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Zuora's net margin is impressive, surpassing industry averages. With a net margin of -12.49%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Zuora's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -10.04%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.68%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Zuora's debt-to-equity ratio stands notably higher than the industry average, reaching 2.9. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.