Analyst Shrenik Kothari from Robert W. Baird maintained a Buy rating on Zscaler and keeping the price target at $345.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Zscaler’s strong financial performance and growth potential. The company’s remaining performance obligations (RPO) have shown significant growth, with a 30.8% year-over-year increase, indicating a robust pipeline of future revenue. Additionally, Zscaler’s ability to convert deferred revenue into recognized revenue has improved, contributing to a substantial portion of its total revenue.
Furthermore, the company has demonstrated impressive revenue growth driven by an increase in users and upselling additional subscriptions to existing customers, which accounted for a significant portion of the year-over-year revenue increase. The expansion of Zscaler’s customer base, including a notable presence among the Global 2000 companies, further supports the positive outlook. The company’s strategic partnerships with channel partners and a strong international presence also contribute to its growth prospects, reinforcing the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $320.00 price target.
Based on the recent corporate insider activity of 51 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.