Needham analyst Scott Berg has reiterated their bullish stance on ZETA stock, giving a Buy rating on June 5.
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Scott Berg has given his Buy rating due to a combination of factors that highlight Zeta Global Holdings Corp’s strong market position and potential for growth. One of the main reasons for the positive outlook is the company’s compelling and differentiated platform, which is sold to a diversified client base. This strategic positioning is expected to support Zeta’s revenue growth goals for the fiscal year 2028, alongside significant improvements in profitability.
Moreover, Berg points out the company’s impressive free cash flow conversion improvements and the anticipated achievement of GAAP operating profitability in the near future. Despite a reduction in the price target from $25 to $20 due to a broader pullback in software valuations, the valuation remains attractive. The stock’s valuation is seen as highly appealing at 2.3 times the total fiscal year 2026 revenues, with potential for a much higher valuation in a normalized market, supporting the Buy recommendation.