Expert Outlook: Zuora Through The Eyes Of 8 Analysts
In the last three months, 8 analysts have published ratings on Zuora (NYSE:ZUO), offering a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 6 | 0 | 2 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 3 | 0 | 2 | 0 | 0 |
| 2M Ago | 2 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have set 12-month price targets for Zuora, revealing an average target of $13.25, a high estimate of $15.00, and a low estimate of $10.00. This upward trend is evident, with the current average reflecting a 3.92% increase from the previous average price target of $12.75.
Understanding Analyst Ratings: A Comprehensive Breakdown
A clear picture of Zuora's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joshua Reilly | Needham | Maintains | Buy | $15.00 | $15.00 |
| Rob Oliver | Baird | Raises | Neutral | $10.00 | $8.00 |
| Joshua Reilly | Needham | Maintains | Buy | $15.00 | $15.00 |
| Joseph Vafi | Canaccord Genuity | Maintains | Buy | $13.00 | $13.00 |
| Jacob Stephan | Lake Street | Raises | Buy | $13.00 | $12.00 |
| Brent Thill | Jefferies | Raises | Hold | $10.00 | $9.00 |
| Joshua Reilly | Needham | Maintains | Buy | $15.00 | $15.00 |
| Joshua Reilly | Needham | Maintains | Buy | $15.00 | $15.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zuora. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Zuora compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Zuora's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into Zuora's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
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About 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: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Zuora displayed positive results in 3 months. As of 30 April, 2024, the company achieved a solid revenue growth rate of approximately 6.47%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -12.49%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Zuora's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -10.04%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Zuora's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.68%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Zuora's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.9, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.