Deep Dive Into Zuora Stock: Analyst Perspectives (5 Ratings)

In the latest quarter, 5 analysts provided ratings for Zuora ZUO, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $13.2, with a high estimate of $15.00 and a low estimate of $8.00. Marking an increase of 1.54%, the current average surpasses the previous average price target of $13.00.

Deciphering Analyst Ratings: An In-Depth Analysis

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: 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: 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: Analysts navigate through adjustments in price targets, providing estimates for Zuora's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Zuora's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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.

Unraveling the Financial Story of Zuora

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Zuora's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2024, the company achieved a revenue growth rate of approximately 7.4%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher 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 -18.83%, 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 -16.07%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Zuora's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -2.63% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Zuora's debt-to-equity ratio surpasses industry norms, standing at 3.02. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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