In a report released today, Brian Essex from J.P. Morgan maintained a Buy rating on Zscaler, with a price target of $351.00.
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Brian Essex has given his Buy rating due to a combination of factors that highlight Zscaler’s strong market position and financial performance. The company reported impressive fourth-quarter results, exceeding expectations in revenue, billings, profitability, and free cash flow. Despite initial concerns about the annual recurring revenue guidance, these were attributed to a change in calculation methodology rather than a decline in business fundamentals.
Moreover, Zscaler is well-positioned to benefit from industry trends such as the shift towards cloud adoption and increased focus on security software. The company’s emerging products, including AI Security and Zero Trust Everywhere, have shown significant growth, contributing over $1 billion in annual recurring revenue. This positions Zscaler as a formidable competitor alongside industry leaders. The conservative guidance for FY26 and strategic changes in the sales organization further support the potential for improved productivity and financial performance, reinforcing the Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $320.00 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.