Robert W. Baird analyst Shrenik Kothari maintained a Buy rating on Zscaler (ZS – Research Report) today and set a price target of $250.00.
Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Zscaler’s strong financial performance and strategic growth initiatives. One key factor is the company’s robust growth in remaining performance obligations (RPO), which increased significantly year-over-year and quarter-over-quarter, indicating a healthy pipeline of future revenue. Additionally, Zscaler’s deferred revenue contribution has been substantial, reflecting strong customer demand and effective revenue recognition practices.
Another reason for the Buy rating is the company’s impressive revenue growth, driven by an increase in users and additional subscriptions from existing customers. This growth is complemented by a strategic focus on multi-year advance billings, which enhances calculated billings and aligns with both the company’s and customers’ business objectives. Furthermore, the recent acquisition of Fidenty B.V. positions Zscaler to expand its technological capabilities and market reach, further supporting the positive outlook on the stock.
In another report released on March 11, BTIG also maintained a Buy rating on the stock with a $252.00 price target.
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