Zscaler upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo upgraded Zscaler (ZS) to Overweight from Equal Weight with a price target of $385, up from $260. The firm believes software infrastructure spending in the second half of 2025 and beyond will be driven by adoption of agentic artificial intelligence, which benefits many software names, including Zscaler. Wells names Zscaler a top pick for the second half of 2025. The stock is already up 66% year-to-date, but there is still “significant room for multiple expansion,” particularly if its billings growth continues to accelerate in fiscal Q4, the analyst tells investors in a research note.