William Blair analyst Arjun Bhatia has reiterated their bullish stance on ZETA stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Zeta Global Holdings Corp’s strong growth prospects and competitive positioning. The company’s investor day showcased the durability of its key growth drivers, such as the legacy replacement cycle, AI advancements, and the adoption of the One Zeta platform, which are expected to drive significant revenue growth. Additionally, Zeta’s management has set ambitious profitability targets, aiming for a 30%-plus EBITDA margin and over 70% cash flow conversion by 2030, which surpasses their previous targets for 2028.
Furthermore, Bhatia notes that Zeta’s valuation appears attractive compared to its fast-growing peers, as it trades at lower multiples of EBITDA and free cash flow. The company’s broad front-office platform, which spans data management and customer engagement, provides a competitive edge and a wide moat in the industry. The introduction of Athena, Zeta’s new conversational AI agent, is also seen as a positive development that enhances the platform’s capabilities. These factors collectively reinforce Bhatia’s confidence in Zeta’s potential for durable organic revenue growth and justify the Buy rating.
In another report released today, Needham also maintained a Buy rating on the stock with a $25.00 price target.