Analyst Gray Powell of BTIG reiterated a Buy rating on Zscaler, retaining the price target of $365.00.
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Gray Powell has given his Buy rating due to a combination of factors that highlight Zscaler’s strong financial performance and promising future prospects. The company delivered impressive fourth-quarter results, surpassing both BTIG’s and the market’s expectations with a significant increase in billings. This performance indicates robust demand for Zscaler’s offerings and suggests that the company is well-positioned to capitalize on growth opportunities in the network security market.
Moreover, Zscaler’s revenue guidance for the upcoming fiscal year appears conservative, with historical trends showing the company often exceeds its initial projections. The company’s focus on innovative products such as Data Protection and AI-Security, which are experiencing rapid growth, further supports the positive outlook. Additionally, Zscaler’s strategic positioning in the Security Service Edge (SSE) market and its ability to gain market share during the firewall refresh cycle reinforce the confidence in its continued success. These factors collectively justify the Buy rating and suggest that Zscaler is poised for sustained growth.
Powell covers the Technology sector, focusing on stocks such as Palo Alto Networks, CyberArk Software, and Zscaler. According to TipRanks, Powell has an average return of 9.7% and a 55.13% success rate on recommended stocks.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $350.00 price target.