Unveiling 8 Analyst Insights On Zuora

Zuora ZUO has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Zuora, presenting an average target of $13.0, a high estimate of $15.00, and a low estimate of $8.00. Surpassing the previous average price target of $11.75, the current average has increased by 10.64%.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Zuora among financial experts becomes clear with a thorough analysis 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 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Zuora compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Zuora's future value. Examining the 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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Get to Know Zuora Better

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.

Key Indicators: Zuora's Financial Health

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's remarkable performance in 3 months is evident. As of 31 January, 2024, the company achieved an impressive revenue growth rate of 7.4%. This signifies 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 financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -18.83%, the company showcases strong profitability and 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 -16.07%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Zuora's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.63%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zuora's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.02, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of 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.

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.