BofA downgrades Zscaler to Neutral on growth concerns

BofA downgraded Zscaler to Neutral from Buy with a price target of $195, down from $265. The company’s “weak” first half of 2025 billings guidance brings concerns about its underlying growth, the impact of competition, and disappointing upsell opportunities, the analyst tells investors in a research note. The firm believes Zscaler’s second half of the year outlook has risk of disappointment. The first growth weakness “might signal deeper long-term growth issues,” contends BofA.