Zedge, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Allen Klee from Maxim Group reiterated a Buy rating on the stock and has a $6.00 price target.
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Allen Klee has given his Buy rating due to a combination of factors, including Zedge’s accelerating top-line growth and improving profitability. He highlights that revenue is rising at a double‑digit pace, driven mainly by advertising and subscription strength, while adjusted EBITDA is recovering meaningfully, supported by cost controls and higher‑margin recurring subscription income.
He also emphasizes the company’s solid balance sheet with significant cash, no debt, ongoing free‑cash‑flow generation, share repurchases, and a dividend, all while the stock trades at a substantial EV/EBITDA discount to peers. In addition, Klee sees meaningful upside from monetizing Zedge’s large content library through DataSeeds and other AI‑related initiatives, which, combined with new product launches, underpin his above‑market valuation and support the Buy recommendation.
In another report released on March 9, TipRanks – Google also reiterated a Buy rating on the stock with a $3.50 price target.