Zeta Global Gains Analyst Favor as Application SaaS Sector Shows Signs of Revival
Wall Street is taking renewed notice of Zeta Global Holdings Corp. (NYSE: ZETA), with several analyst firms boosting their price targets for the cloud marketing platform in recent weeks. The moves signal growing confidence that the long-struggling Application Software-as-a-Service (SaaS) sector may be poised for a turnaround in 2026.
The latest vote of confidence came from Goldman Sachs, which on January 28 raised its price target to $26 from $23, though it maintained a Neutral rating. This followed action by Morgan Stanley analyst Elizabeth Porter, who on January 15 increased her firm's target to $27 from $23 and reiterated a Buy rating. In a research note, Porter suggested that while the Application SaaS space underperformed last year, AI-related headwinds are expected to ease, supporting a more constructive outlook for the coming year.
"The early momentum Zeta is demonstrating in 2026, combined with a stabilizing macro environment for SaaS, is becoming hard to ignore," said Porter. The stock currently trades below even the most conservative Wall Street target of $25, implying a potential upside of over 23% from current levels, according to data covering 14 analysts.
Further bullish sentiment emerged from Canaccord Genuity, where analyst David Hynes reaffirmed a Buy rating and a $30 price target on January 13. Hynes cited the company's strong execution, a newly announced collaboration with OpenAI that enhances its Athena AI platform, and positive feedback from industry events like CES 2026.
Zeta Global provides an omnichannel, data-driven cloud platform that helps enterprises with consumer intelligence and marketing automation. Its suite of products, including an agile intelligence platform, allows brands to personalize customer engagement at scale.
The analyst upgrades reflect a broader narrative taking shape: after a period of valuation compression and AI-driven uncertainty, select application SaaS companies with clear use cases and strong partnerships are regaining favor. Zeta's focus on leveraging AI for practical marketing outcomes, rather than speculative technology, appears to be resonating with investors looking for tangible growth drivers.
What Readers Are Saying
"Finally some positive news for SaaS investors. Zeta's partnership with OpenAI is a real differentiator. This isn't just another company slapping 'AI' on its press releases—it's building a practical, integrated platform. I've been adding to my position." — Michael R., Portfolio Manager, San Francisco
"Let's not get carried away. One quarter of 'momentum' and a few target hikes don't make a recovery. The entire sector is still hypersensitive to interest rates and enterprise spending freezes. This feels like analysts trying to call a bottom prematurely." — Sarah Chen, Tech Analyst Blog
"As a CMO, I've been using Zeta's platform for two years. The AI features they've rolled out, especially since the OpenAI tie-up, have genuinely improved our campaign ROI. The stock might finally be catching up to the tech's real-world value." — David Park, Chief Marketing Officer
"So Goldman raises the target but keeps a 'Neutral'? That's classic Wall Street doublespeak. Either the fundamentals are improving or they aren't. This sector is littered with companies that had 'early momentum' and then flattened. Show me sustained revenue growth and expanding margins, not just analyst cheerleading." — Janet T., Independent Investor Forum