Zscaler (ZS – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Brian Essex from J.P. Morgan maintained a Buy rating on the stock and has a $292.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Brian Essex has given his Buy rating due to a combination of factors that highlight Zscaler’s strong performance and growth potential. The company has exceeded expectations in revenue, billings, profitability, and free cash flow, which led to an increase in its full-year guidance. This impressive performance is supported by the robust contribution from emerging products and a significant increase in new customer acquisitions, especially in Zero Trust solutions.
Furthermore, Zscaler’s large customer base has shown substantial growth, and the company is on track to achieve significant annual recurring revenue milestones. The recent acquisition of Red Canary is expected to enhance Zscaler’s capabilities and market position. Additionally, improved sales productivity and strategic organizational changes have contributed to accelerated growth in unscheduled billings. These factors, combined with a favorable macroeconomic outlook for security budgets, underpin Essex’s optimistic outlook and Buy rating for Zscaler.
In another report released today, Barclays also maintained a Buy rating on the stock with a $290.00 price target.