Analyst Shrenik Kothari from Robert W. Baird maintained a Buy rating on Zscaler (ZS – Research Report) and keeping the price target at $315.00.
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Shrenik Kothari’s rating is based on several positive indicators for Zscaler’s financial performance. The company has shown strong growth in its remaining performance obligations (RPO), which increased by over 30% year-over-year, indicating a robust pipeline of future revenue. Additionally, a significant portion of this RPO is expected to be recognized within the next year, suggesting solid short-term revenue prospects.
Furthermore, Zscaler has demonstrated impressive revenue growth, driven by an increase in users and additional subscriptions from existing customers. The company’s customer base has expanded by 10% year-over-year, and revenue from direct customers has surged by nearly 58%. These factors, combined with strategic partnerships and a notable unrealized foreign exchange gain, contribute to Kothari’s positive outlook on Zscaler’s stock, justifying the Buy rating.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $305.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ZS in relation to earlier this year.