A Glimpse Into The Expert Outlook On Zuora Through 4 Analysts

In the last three months, 4 analysts have published ratings on Zuora ZUO, offering a diverse range of perspectives from bullish to bearish.

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 $14.5, with a high estimate of $16.00 and a low estimate of $12.00. This current average reflects an increase of 45.0% from the previous average price target of $10.00.

Interpreting Analyst Ratings: A Closer Look

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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zuora. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging 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.

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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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 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.

Breaking Down Zuora's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -5.01%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Zuora's ROE excels beyond industry benchmarks, reaching -4.62%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Zuora's ROA stands out, surpassing industry averages. With an impressive ROA of -0.76%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 3.2, Zuora faces challenges in effectively managing its debt levels, indicating potential financial strain.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.

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