Zapata AI initiated with a Speculative Buy at Benchmark

Benchmark analyst Matthew Harrigan initiated coverage of Zapata AI with a Speculative Buy rating and $1.50 2025 price target. Zapata AI is “an innovator and IP leader in Industrial Generative AI,” says the analyst, who argues that “under the highly punitive quasi-venture equity cost, the current share price implies achieving only $70M in 2030 sales at a 25% EBITDA margin.” If the company executes well on its opportunities and delivers financial performance, “valuation parameters could migrate more toward a Nasdaq cost of equity, which could generate 2025 fair value near $11,” the analyst added.