Zscaler price target raised to $366 from $350 at RBC Capital

RBC Capital raised the firm’s price target on Zscaler (ZS) to $366 from $350 and keeps an Outperform rating on the shares as part of a broader research note previewing Q3 results in the Software sector. Software volatility remains elevated on the AI trade as there is a crowding effect with AI winners, though the firm’s checks for October off-quarter earnings were better than prior quarters, most notably from select cybersecurity vendors, as investors focus on ideas that can accelerate growth and benefit from AI trends, the analyst tells investors in a research note.