Goldman Sachs Upgrades Zuora Inc. (ZUO) to Buy 'on improving risk-reward'

Goldman Sachs analyst Adam Hotchkiss upgraded Zuora Inc. (NYSE: ZUO) from Neutral to Buy with a price target of $12.00 (from $10.00).

The analyst comments "We upgrade shares of ZUO to Buy, with a new 12-month PT of $12 (formerly $10). Heading into FY25, we think numbers are de-risked in a stabilizing end market, new product uptake presents upside risk that is not currently modeled (see our Zuora Subscribed Live Takeaways), and the improving profitability profile of the company is both sustainable and increasingly a source of valuation support. With ZUO shares trading at just 2.5X 2025E EV/Sales and ~16X EV/EBITDA (with strong EBITDA-to-FCF conversion going forward), we see current levels as a favorable entry point given the likely stabilization in fundamentals and positive risk-reward skew."

For an analyst ratings summary and ratings history on Zuora Inc. click here. For more ratings news on Zuora Inc. click here.

Shares of Zuora Inc. closed at $8.84 yesterday.

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