JPMorgan has altered its stance on Ziff Davis (ZD, Financial), downgrading it from Overweight to Neutral. The financial firm has also substantially reduced its price target for the digital media company from $60 to $33. This adjustment arrives as JPMorgan re-evaluates its expectations for small-cap internet and video game companies, factoring in broader economic uncertainty and tariff implications.
The firm notes that Ziff Davis's outlook for 2025 seems optimistic because it assumes stability in the macroeconomic environment compared to 2024. Given the current economic landscape, fuelled by macro and tariff concerns, JPMorgan believes that achieving the expected revenue growth for the year may be challenging.
As the first quarter earnings approach, JPMorgan has taken a more cautious approach to Ziff Davis's prospects, alongside similar adjustments for other small-cap companies within the sector. The updated outlook reflects the difficulties these companies may face in navigating the current economic headwinds.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Ziff Davis Inc (ZD, Financial) is $57.67 with a high estimate of $80.00 and a low estimate of $48.00. The average target implies an upside of 86.32% from the current price of $30.95. More detailed estimate data can be found on the Ziff Davis Inc (ZD) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Ziff Davis Inc's (ZD, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ziff Davis Inc (ZD, Financial) in one year is $79.64, suggesting a upside of 157.32% from the current price of $30.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ziff Davis Inc (ZD) Summary page.
