Morgan Stanley analyst Meta Marshall has maintained their bullish stance on ZS stock, giving a Buy rating today.
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Meta Marshall has given his Buy rating due to a combination of factors that highlight Zscaler’s strong market position and growth potential. The company has shown significant traction in its expansion categories, particularly with the performance of Red Canary, which bolsters confidence in its growth prospects. Zscaler is establishing itself as a third true platform, benefiting from tailwinds in AI and maintaining leading profitability.
Marshall notes that Zscaler’s platform customers, such as those using Z-Flex, have seen a substantial increase in bookings, and the company’s three growth pillars—AI Security, Zero Trust Everywhere, and Data Security Everywhere—are accelerating and now contribute over $1 billion in annual recurring revenue. Despite the crowded nature of the stock and results aligning with buyside expectations, the quarter’s performance confirms the thesis of continued growth, making Zscaler an attractive buy, especially on any post-earnings weakness.
Marshall covers the Technology sector, focusing on stocks such as Arista Networks, SailPoint, Inc., and Zscaler. According to TipRanks, Marshall has an average return of 2.7% and a 52.67% success rate on recommended stocks.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $335.00 price target.