Critical Insights From Zuora Analyst Ratings: What You Need To Know

Author: Benzinga Insights | October 21, 2024 12:00pm

4 analysts have expressed a variety of opinions on Zuora (NYSE:ZUO) over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	2	0	2	0	0
Last 30D	0	0	1	0	0
1M Ago	0	0	1	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. A negative shift in sentiment is evident as analysts have decreased the average price target by 7.54%.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Zuora by financial experts. The following summary presents 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	Hold	$15.00	$15.00
Jacob Stephan	Lake Street	Announces	Hold	$10.00	-
Joseph Vafi	Canaccord Genuity	Maintains	Buy	$13.00	$13.00
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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zuora compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Zuora's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Zuora analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

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.

Financial Insights: Zuora

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Zuora displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 6.8%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Zuora's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -6.26%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -4.36%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Zuora's ROA excels beyond industry benchmarks, reaching -0.87%. This signifies efficient management of assets and strong financial health.

Debt Management: Zuora's debt-to-equity ratio stands notably higher than the industry average, reaching 2.12. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

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.

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.

Breaking: Wall Street's Next Big Mover

Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.

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

Posted In: ZUO