Analyst Shaul Eyal of TD Cowen reiterated a Buy rating on Zscaler, retaining the price target of $330.00.
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Shaul Eyal has given his Buy rating due to a combination of factors that highlight Zscaler’s strong market positioning and growth potential. The company is strategically positioned to benefit from the increasing demand for hybrid security, data, and AI solutions, which are becoming crucial in the current technological landscape. Additionally, Zscaler’s management views the recent public listing of NetSkope as a stabilizing factor in the competitive SASE market, which in turn supports pricing stability and reduces pressure on Zscaler’s pricing strategies.
Moreover, Zscaler’s growth is driven by its three emerging pillars: Zero Trust Everywhere, Data Security Everywhere, and Agentic Ops, which have already surpassed $1 billion in annual recurring revenue (ARR) and are growing faster than the company’s overall ARR. The company’s AI portfolio is also on track to exceed $400 million in ARR by FY26, with the integration of Red Canary expected to further boost agentic AI adoption. Furthermore, the Z-Flex platform is experiencing rapid adoption due to its flexible consumption model and ease of procurement, contributing significantly to the company’s growth trajectory. These factors collectively support a positive outlook for Zscaler, justifying the Buy rating.
According to TipRanks, Eyal is a top 100 analyst with an average return of 26.8% and a 70.16% success rate. Eyal covers the Technology sector, focusing on stocks such as Palo Alto Networks, Fortinet, and SentinelOne.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $350.00 price target.