Analyst Expectations For Zuora's Future

Across the recent three months, 4 analysts have shared their insights on Zuora ZUO, expressing a variety of opinions spanning from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $13.25, along with a high estimate of $15.00 and a low estimate of $10.00. Highlighting a 7.54% decrease, the current average has fallen from the previous average price target of $14.33.

Interpreting Analyst Ratings: A Closer Look

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.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Zuora. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Capture valuable insights into Zuora's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

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Discovering Zuora: A Closer Look

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.

Zuora's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to 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 6.8% as of 31 July, 2024. This reflects a substantial 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 net margin excels beyond industry benchmarks, reaching -6.26%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Zuora's ROE excels beyond industry benchmarks, reaching -4.36%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.87%, the company showcases effective utilization of assets.

Debt Management: Zuora's debt-to-equity ratio surpasses industry norms, standing at 2.12. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are 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.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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