BMO Capital analyst Keith Bachman has maintained their bullish stance on ZS stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Keith Bachman has given his Buy rating due to a combination of factors that highlight Zscaler’s strong performance and potential for future growth. The company’s annual recurring revenue (ARR) has shown significant growth, with a 22% year-over-year increase, and net new ARR also demonstrated robust growth, improving by 16% year-over-year. This growth is supported by Zscaler’s strategic focus on its three platform growth vectors, which include Zero Trust Everywhere, Data Security Everywhere, and AI-Security, all of which have contributed to surpassing $1 billion in combined ARR.
Furthermore, Bachman notes that Zscaler’s management has provided a healthy guidance for fiscal year 2026, projecting an ARR growth of approximately 22-23% year-over-year, including contributions from recent acquisitions like Red Canary. This guidance suggests a strong outlook for continued expansion and innovation. Bachman believes that Zscaler’s expanding total addressable market (TAM) and its ability to maintain technology leadership position the company well for long-term, sustainable growth, justifying the Buy rating.
Bachman covers the Technology sector, focusing on stocks such as Oracle, CrowdStrike Holdings, and Check Point. According to TipRanks, Bachman has an average return of 9.1% and a 54.66% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $320.00 price target.