Zscaler price target raised to $264 from $251 at Bernstein

Bernstein analyst Peter Weed raised the firm’s price target on Zscaler (ZS) to $264 from $251 and keeps an Outperform rating on the shares. The firm says Zscaler’s Q1 earnings was a result it would normally expect to receive positive reaction. The revenue beat of $15M vs. midpoint was strongest in a year, and the company passed through an even larger $17M to the full year guide. And, yes, there was an overall inorganic aspect to the quarter-over-quarter ARR growth, but “if we back that out” Bernstein says one sees the organic quarter-over-quarter Net New ARR growth was $90M-plus – a strong increase from $79M in the year ago quarter.