In a report released yesterday, Rob Owens from Piper Sandler downgraded Zscaler (ZS – Research Report) to a Hold, with a price target of $260.00.
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Rob Owens has given his Hold rating due to a combination of factors influencing Zscaler’s current market position. Despite the company delivering impressive quarterly results, including a notable increase in revenue and billings, the recent significant rise in stock price suggests limited potential for further upside in the near term. The integration of a recent acquisition and uncertainties related to future guidance and macroeconomic conditions also contribute to a cautious outlook.
Additionally, while Zscaler’s operational performance has surpassed expectations, the analyst advises against pursuing the stock at its current elevated levels. Instead, investors are encouraged to wait for more attractive entry points. The decision to downgrade to a Neutral rating reflects a belief that the stock is fairly valued at present, with a price target set at $260.
According to TipRanks, Owens is a top 100 analyst with an average return of 20.8% and a 63.02% success rate. Owens covers the Technology sector, focusing on stocks such as Okta, Gitlab, and Palo Alto Networks.
In another report released on May 28, Roth MKM also maintained a Hold rating on the stock with a $215.00 price target.