zSpace initiated with a Market Perform at Northland

Northland analyst Nehal Chokshi initiated coverage of zSpace (ZSPC) with a Market Perform rating and $20 price target The firm’s interviews and analysis indicate zSpace creates better educational outcomes, making zSpace’s core market “the subscriptionizing educational content market,” the analyst tells investors. The firm expects zSpace will eventually pivot to a software only model, which it sees driving 30%-plus operating margins on a long-term basis.