Zscaler upgraded at Cantor Fitzgerald as solid trends should drive re-rating

Cantor Fitzgerald upgraded Zscaler (ZS) to Overweight from Neutral with a price target of $250, up from $220. Improved execution, “solid” near-term checks, and the expectation that accelerating billings, revenue growth, and margin expansion can support a re-rating of shares moving through fiscal 2025, the analyst tells investors in a research note. Cantor views Zscaler as a leading Zero Trust vendor that is poised to capture 20% revenue growth of the next couple of years.