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On Wednesday, BTIG analysts increased the price target for Zscaler (NASDAQ:ZS) stock to $329 from $298 while maintaining a Buy rating, as the stock trades near $295, close to its 52-week high. This adjustment follows insights gathered at Zscaler’s annual Zenith Live user conference and investor session in Las Vegas. According to InvestingPro data, 35 analysts have recently revised their earnings estimates upward, reflecting growing confidence in the company’s prospects.
During the event, BTIG analysts engaged with Zscaler management and industry contacts, noting a significant increase in attendance compared to previous years. Conversations with partners, security executives, and a Zscaler sales representative indicated heightened interest in the company’s Zero Trust Branch offering. This aligns with the company’s impressive revenue growth of 25.46% and industry-leading gross profit margins of 77.46%.
The analysts also reported positive feedback on Zscaler’s strategy with Avalor and Red Canary in the SecOps space. Improvements in go-to-market initiatives with core ZIA and ZPA products were highlighted as encouraging developments.
The increased confidence in Zscaler’s growth outlook was a key factor in raising the price target. The event provided valuable insights and data points that contributed to the analysts’ optimistic view of the company’s future performance.
In other recent news, Zscaler has reported strong third-quarter results that have led several analyst firms to adjust their outlooks on the company. UBS analysts raised their price target for Zscaler to $315, maintaining a Buy rating, following the company’s better-than-expected performance. Zscaler’s billings increased by 25% year-over-year, surpassing its own guidance, and its free cash flow and operating margin also exceeded expectations. Canaccord Genuity also raised its price target to $305, highlighting optimism about Zscaler’s growth prospects and improved profit margins. FBN Securities adjusted its price target to $300, citing Zscaler’s 23% year-over-year revenue increase and robust billings growth. RBC Capital lifted its target to $304, noting Zscaler’s strong financial performance and revised full-year guidance. Mizuho (NYSE:MFG), while maintaining a Neutral rating, increased the price target to $290, emphasizing Zscaler’s focus on AI security and its strategic acquisition of Red Canary. These developments reflect a broad confidence among analysts in Zscaler’s ongoing growth and financial health.
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