William Blair analyst Arjun Bhatia has reiterated their bullish stance on ZETA stock, giving a Buy rating on November 21.
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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 potential and competitive positioning. The discussions with Zeta’s leadership reinforced confidence in the company’s ability to sustain its growth trajectory, particularly through initiatives like the legacy platform replacement cycle and the One Zeta cross-sell strategy. Additionally, the integration of Marigold and the strategic use of Athena AI are expected to further enhance the platform’s capabilities and expand its use cases, driving more extensive adoption.
Despite the stock’s recent outperformance relative to the broader software sector, it remains undervalued, trading at a significant discount compared to its peers. This undervaluation, combined with expectations of substantial organic revenue growth, EBITDA growth, and free cash flow expansion, presents an attractive investment opportunity. The potential for a rerating of the stock’s multiple, alongside Zeta’s robust growth narrative and margin improvements, underpins the Buy recommendation.
In another report released on November 21, Citi also initiated coverage with a Buy rating on the stock with a $26.00 price target.