Jefferies analyst Joseph Gallo maintained a Buy rating on Zscaler (ZS – Research Report) today and set a price target of $305.00.
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Joseph Gallo has given his Buy rating due to a combination of factors including Zscaler’s impressive financial performance and strategic initiatives. The company demonstrated strong billings growth, accelerating to 25% year-over-year in the third fiscal quarter, surpassing expectations and indicating robust platform strength. This growth is expected to continue into the fourth quarter, supported by improved sales efficiency and a broadening product portfolio.
Moreover, Zscaler’s emerging product categories such as Zero Trust Everywhere and Data Security Everywhere have shown promising traction, contributing significantly to the company’s annual recurring revenue. Despite a cautious macroeconomic environment, Zscaler’s management has effectively refined its go-to-market strategy, focusing on reducing sales friction and expanding platform adoption through its new flexible consumption model, Z-Flex. These strategic moves, along with the company’s ability to demonstrate return on investment to customers, underpin Gallo’s positive outlook and Buy rating.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $310.00 price target.