Zscaler’s Strong Market Position and Strategic Growth Justify Buy Rating

Joseph Gallo, an analyst from Jefferies, maintained the Buy rating on Zscaler (ZS – Research Report). The associated price target was raised to $350.00.

Joseph Gallo has given his Buy rating due to a combination of factors that highlight Zscaler’s strong market position and growth potential. The company is recognized as a leader in the enterprise space for cloud-based network security, with its SASE and Zero Trust solutions gaining significant traction. Positive feedback from channel partners indicates robust demand for Zscaler’s core products, ZIA and ZPA, and an uptick in interest for ZDX, reflecting healthy market momentum.
Additionally, Zscaler’s strategic acquisition of Red Canary is expected to bolster its technological edge, particularly in data security, and enhance its ability to monetize data. The company’s focus on refining its go-to-market strategy, under the leadership of Mike Rich, has resulted in improved sales productivity and a thoughtful expansion approach. These factors, combined with the rapid growth in data security and AI offerings, underscore the potential for continued success, justifying the Buy rating.

In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $329.00 price target.