TD Cowen analyst Shaul Eyal reiterated a Buy rating on Zscaler today and set a price target of $330.00.
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Shaul Eyal has given his Buy rating due to a combination of factors that highlight Zscaler’s strong financial performance and growth potential. The company has exceeded expectations in its fourth fiscal quarter, with revenue and annual recurring revenue (ARR) surpassing estimates, showcasing robust demand for its offerings. The positive reception of Zscaler’s Z-Flex pricing plan and the accelerated adoption of its AI capabilities, particularly through partnerships like Red Canary, further bolster its revenue prospects.
Additionally, Zscaler’s strategic focus on emerging growth categories such as ‘zero trust everywhere’ and ‘agentic operations’ is contributing to its rapid ARR growth, positioning it well to achieve its long-term targets. The company’s success in attracting large customers and consistent growth across major geographies underscore its market strength. These factors, combined with upward revisions in revenue and earnings estimates, support the Buy rating and increased price target.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $340.00 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.