Barrington analyst Alexander Paris reiterated a Buy rating on zSpace, Inc. (ZSPC – Research Report) today and set a price target of $10.00.
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Alexander Paris has given his Buy rating due to a combination of factors including zSpace, Inc.’s strategic shift towards higher-margin software and services, which are essential for the company’s growth and stability. Despite a decline in hardware revenue, the company is seeing encouraging growth in these areas, which aligns with its long-term strategy of building recurring revenue streams.
Additionally, the transition to the Inspire 2 laptop, which offers cost benefits and maintains educational impact, is expected to improve the company’s gross margin. The stock is currently trading at a discount compared to its peers, providing an attractive entry point for investors. Paris remains confident in the company’s potential for growth both domestically and internationally, justifying the reiteration of the OUTPERFORM rating and a price target of $10.