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Investing.com - Morgan Stanley upgraded Zscaler (NASDAQ:ZS) from Equalweight to Overweight on Tuesday, while raising its price target to $320.00 from $280.00. The cybersecurity company, currently valued at $43.14 billion, has seen its stock surge over 41% in the past six months. According to InvestingPro data, analyst targets for the stock range from $215 to $385.
The upgrade reflects Zscaler’s strong position in the zero-trust network access (ZTNA) market, where the company holds a leading 32% market share, according to Morgan Stanley.
The investment firm highlighted the growing importance of secure access service edge (SASE) technology, which provides consistent security policies across both on-premise and cloud environments regardless of user location.
Morgan Stanley noted that Gartner predicts SASE adoption among enterprises will grow significantly from 14% today to 47% by 2027, creating a substantial growth catalyst for companies in this space.
The firm believes Zscaler is well-positioned to leverage its zero-trust leadership to build out a comprehensive platform and increase wallet share as cybersecurity challenges expand amid the growing threat environment, which has been further complicated by artificial intelligence.
In other recent news, Cantor Fitzgerald has reiterated its Overweight rating on Zscaler, maintaining a price target of $340. This decision is driven by expectations of accelerated billings in the second half of the year, fueled by the growing adoption of Zscaler’s cloud security and data protection solutions. Additionally, the company’s new Z-Flex program has shown promising results, generating $65 million in total contract value bookings since its launch in the third quarter.
Meanwhile, B.Riley has initiated coverage on Zscaler with a Neutral rating and a price target of $275. The firm recognizes Zscaler as a leader in secure access markets, highlighting its SaaS-based cloud cybersecurity services. These services enable secure connections for users, devices, and applications from any location. These recent developments reflect the company’s ongoing efforts to expand its offerings and strengthen its market position.
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