zSpace upgraded to Outperform from Market Perform at Northland

Northland upgraded zSpace (ZSPC) to Outperform from Market Perform with a price target of $10, down from $20. Near-term demand uncertainties “abound” as December quarter bookings were impacted by the timing of a capital raise and March quarter bookings are being impacted by new administration policies. However, metrics and data points give the firm “confidence to project sustained 25% software growth” and it views the risk/reward as favorable with its lowered price target now indicating 50% upside, the analyst tells investors.