Analyst Shaul Eyal of TD Cowen reiterated a Buy rating on Zscaler, retaining the price target of $330.00.
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Shaul Eyal has given his Buy rating due to a combination of factors including Zscaler’s strong financial performance and growth prospects. The company reported impressive year-over-year growth in both revenue and annual recurring revenue (ARR), surpassing market expectations. This growth is supported by Zscaler’s strategic focus on three primary vectors: Data Security, AI Security, and Zero Trust Everywhere, all of which are performing well and contributing significantly to the company’s ARR.
Moreover, Zscaler’s financial metrics such as gross margin, operating margin, and free cash flow margin reflect robust operational efficiency. The company’s ability to innovate and expand its customer base ahead of schedule further strengthens its market position. Additionally, the acquisition of Red Canary, although not material to overall performance, has exceeded expectations, adding to the positive outlook. These factors collectively justify the Buy rating and the target price set by Shaul Eyal.
In another report released today, UBS also maintained a Buy rating on the stock with a $340.00 price target.