Navigating 5 Analyst Ratings For Zuora

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In the preceding three months, 5 analysts have released ratings for Zuora ZUO, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 4 0 1 0 0
Last 30D 0 0 1 0 0
1M Ago 1 0 0 0 0
2M Ago 3 0 0 0 0
3M Ago 0 0 0 0 0

In the assessment of 12-month price targets, analysts unveil insights for Zuora, presenting an average target of $12.4, a high estimate of $15.00, and a low estimate of $8.00. Observing a 24.0% increase, the current average has risen from the previous average price target of $10.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Zuora. The following summary 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
Rob Oliver Baird Lowers Neutral $8.00 $10.00
Joshua Reilly Needham Maintains Buy $15.00 -
Adam Hotchkiss Goldman Sachs Raises Buy $12.00 $10.00
Adam Hotchkiss Goldman Sachs Raises Buy $12.00 $10.00
Joshua Reilly Needham Maintains Buy $15.00 -

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zuora. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Gaining insights, analysts provide 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.

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.

Stay up to date on Zuora analyst ratings.

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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 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 CPQ, and Zuora Collect. Zuora caters to various industries comprising software, hardware, media, transportation, construction, healthcare, education, retail, Internet of Things, and others worldwide. Geographically, it derives a majority of its revenue from the United States.

A Deep Dive into Zuora's Financials

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: Over the 3 months period, Zuora showcased positive performance, achieving a revenue growth rate of 8.68% as of 31 October, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Zuora's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -5.01%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -4.62%, the company may need to address challenges in generating satisfactory 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 -0.76%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Zuora's debt-to-equity ratio stands notably higher than the industry average, reaching 3.2. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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

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