Looking Past the Rally, Zeta's Data Advantage Widens: ZETA up to Buy, KVYO down to Neutral

We upgrade Zeta Global (ZETA) to Buy from Neutral and downgrade Klaviyo (KVYO) to Neutral from Buy. Both companies remain differentiated marketing platforms with strong customer feedback and substantial long-term opportunities, but we see greater visibility into upside to 2027 estimates for Zeta. Zeta is benefiting from enterprise share gains as customers modernize legacy marketing platforms and consolidate fragmented data, intelligence and activation tools; its proprietary consumer data and the Palantir partnership create an additional path to larger enterprise opportunities. For Klaviyo, we remain positive on the long-term opportunity but see less visibility into the timing and magnitude of newer growth drivers, as SMBs are more likely to experiment with AI or prioritize horizontal tools before adding new application spend. We see a compelling risk/reward skew in Zeta.