Zscaler price target lowered to $310 from $325 at Mizuho

Mizuho lowered the firm’s price target on Zscaler (ZS) to $310 from $325 and keeps a Neutral rating on the shares. The company reported “very solid” fiscal Q1 results but there were “two unwelcome surprises:” management guided to Q2 net new annual recurring revenue slightly lower than prior, and it declined to provide a specific contribution from the recent Red Canary acquisition, the analyst tells investors in a research note. Mizuho believes it remains premature to say Zscaler will be able to close “large, transformative deals at a strong and steady pace.”