BofA Raises Zeta Global Price Target After New AI Alliance

Bank of America (BofA) raised its price target on Zeta Global Holdings Corp. (NYSE:ZETA) from $24 to $28, while maintaining a Buy rating. The adjustment came after the company announced a new seven-year strategic alliance in artificial intelligence.

Rating Change

Previously, BofA had a price target of $24 on ZETA with a Buy rating. After the announcement, the target was raised to $28, representing an increase of approximately 16.7%.

Analyst Rationale

BofA analysts believe the new AI alliance strengthens Zeta Global's capabilities in data-driven marketing and predictive analytics. The long-term nature of the alliance (seven years) provides revenue stability. The company forecasts EPS growth of 25.08% annually over the next five years.

Context

Zeta Global is a cloud-based marketing platform company powered by AI, and is ranked among the top 12 cybersecurity stocks for long-term buy-and-hold. No immediate comments from other analysts were available.

What to Make of It

The price target hike reflects BofA's confidence in Zeta Global's AI-driven growth strategy. However, investors should monitor the alliance's execution and its impact on actual revenues before making decisions.