ZUO - Zuora: The Drought May Be Over And This Stock Is Ready For A Rally
2024-05-24 01:17:53 ET
Summary
- Zuora's stock has risen nearly 20% this year as more investors unpack its value.
- ZUO is a cheap small/mid-cap enterprise software company with few direct competitors in its niche market.
- The company's Q1 earnings exceeded expectations, with strong growth in subscription revenue and improved net revenue retention rates.
- Despite the recent run-up, I remain long on Zuora with a $13 price target (representing 4x current-year revenue).
The sentiment in the market right now is undoubtedly cautious. Amid the backdrop of higher interest rates and an uncertain macro recovery, the best strategy is to lean in more on "growth at a reasonable price" stocks, allocating more of your portfolio toward value-oriented tech....
Zuora: The Drought May Be Over And This Stock Is Ready For A Rally