Microvast Holdings announces departure of chief financial officer
On Friday, RBC Capital Markets adjusted its price target for Zscaler (NASDAQ:ZS), a leader in cloud-based security solutions, from $288.00 to $304.00. The firm continues to endorse the stock with an Outperform rating. Trading at $272.05, Zscaler has delivered impressive returns with a 60.3% gain over the past year and 39.19% year-to-date, according to InvestingPro data. This change in price target follows Zscaler’s recent financial report, which demonstrated strong performance and exceeded investor expectations.
Zscaler’s robust results were highlighted by the firm, noting the company’s success in various metrics despite the potential challenges posed by tariffs. The company maintains impressive gross profit margins of 77.45% and achieved revenue growth of 25.46% in the last twelve months. The company’s broad platform has gained momentum, and there has been no significant macroeconomic impact affecting its performance. Additionally, Zscaler’s full-year 2025 guidance has been revised upward, reflecting the company’s confidence in its continued growth.
The analyst from RBC Capital expressed that concerns regarding billings in the second half of the year have been mitigated by Zscaler’s third-quarter outperformance and a promising setup for the fourth quarter. The appointment of a new Chief Financial Officer (CFO) and the introduction of a flex/credit program aimed at encouraging wider adoption of Zscaler’s platform were also positively noted. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with technical indicators showing overbought conditions.
The raised price target to $304 is based on an enterprise value to sales (EV/S) multiple of 14.5 times the calendar year 2026 estimates. This adjustment from the previous 16.3 times multiple on the calendar year 2025 estimates reflects an increase in estimated values and a shift in valuation perspective to the calendar year 2026, as the firm remains optimistic about Zscaler’s business momentum. With a market capitalization of $42.04 billion and analyst targets ranging from $196 to $315, investors can access detailed valuation metrics and 13 additional ProTips through InvestingPro’s comprehensive research reports.
In other recent news, Zscaler has reported impressive third-quarter fiscal year 2025 results, surpassing its own guidance and analysts’ expectations across key financial metrics. The company achieved a 23% year-over-year revenue increase to $678 million and a 25% rise in calculated billings to $785 million. Zscaler’s annual recurring revenue (ARR) grew by 23% year-over-year, reaching $2.9 billion, with a trajectory to exceed $3 billion by the end of the fourth quarter. In light of these robust results, several analysts have raised their price targets for Zscaler. Truist Securities increased its target to $300, KeyBanc Capital Markets to $310, Needham to $310, Rosenblatt Securities to $315, and Cantor Fitzgerald to $290, each maintaining a positive outlook on the stock. Zscaler’s strategic acquisition of Red Canary and the introduction of the Z-Flex purchasing program have been noted as contributing factors to its growth. The company’s efforts to expand its platform and innovate in the cybersecurity space have been well-received, with analysts highlighting Zscaler’s strong position in the market. Additionally, the appointment of Kevin Rubin as the new Chief Financial Officer is expected to further bolster the company’s financial strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.