Zscaler downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Zscaler (ZS) to Equal Weight from Overweight with a price target of $155, down from $200. The firm believes the company’s platform story is not playing out given Red Canary’s lack of traction. The analyst does not see a material positive catalyst in the near term for Zscaler shares. This warrants moving to the sidelines, contends Morgan Stanley.