BMO Capital analyst Keith Bachman has maintained their bullish stance on ZS stock, giving a Buy rating today.
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Keith Bachman has given his Buy rating due to a combination of factors including Zscaler’s solid quarterly performance and the increase in annual recurring revenue (ARR) estimates. Despite the stock’s significant year-to-date rise, Bachman notes that the company’s ARR guidance remains conservative, suggesting potential for ongoing outperformance, especially with contributions from Red Canary.
Additionally, Zscaler’s healthy net new ARR growth, driven by both organic growth and the integration of Red Canary, supports the Buy rating. The company’s strategic focus on its three platform growth vectors, such as Zero Trust Everywhere, Data Security Everywhere, and AI-Security, along with its core strengths in ZIA and ZPA, are seen as key drivers of broad-based growth. Bachman also highlights Zscaler’s strong fundamentals and expanding total addressable market, which are expected to sustain long-term growth and maintain its technology leadership amidst increasing competition.
In another report released today, Needham also maintained a Buy rating on the stock with a $310.00 price target.