Zeta Global named ‘Marketing Software 2025 top pick’ at DA Davidson

DA Davidson keeps a Buy rating and $42 price target on Zeta Global (ZETA) while naming the company the firm’s 2025 top pick in Marketing Software. After strong operating results in 2024 which included political tailwinds and better than projected ARPU growth, the November short report has separated the narrative away from the company’s positive underlying business fundamentals and the stock has traded down over 50% from its 52 week high set in the days leading up to the Q3 earnings announcement, the analyst tells investors in a research note. Over the intermediate to long term however, the firm believes that Zeta can sustain 20% y/y growth given the upselling opportunities with existing customers and positioning to benefit from the ongoing legacy marketing cloud replacement cycle.