Zscaler, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mike Cikos from Needham maintained a Buy rating on the stock and has a $310.00 price target.
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Mike Cikos has given his Buy rating due to a combination of factors that highlight Zscaler’s potential for growth and resilience in the market. The company reported a significant year-over-year increase in Annual Recurring Revenue (ARR), surpassing market expectations. This growth was further supported by a raised full-year guidance, indicating confidence in future performance.
Despite some concerns regarding the lack of detailed quantification for certain acquisitions, such as Red Canary, and potential messaging errors related to AI Security ARR, Cikos believes these issues will be addressed in upcoming reports. The company’s strong performance relative to its peers and the anticipation of more concrete data in future quarters underpin the Buy rating, even though there might be short-term volatility in the stock price.
In another report released today, Capital One Financial also upgraded the stock to a Buy with a $320.00 price target.