Citi trims Zscaler target, opens ‘positive catalyst watch’

Citi lowered the firm’s price target on Zscaler to $230 from $240 and keeps a Buy rating on the shares. The analyst also initiated a “90-day positive catalyst watch” on the shares. The firm says “negative-leaning” sentiment, along with second half of the year weighted execution risk, have put Zscaler “in a penalty box.” However, Citi’s fieldwork “continues to screen stable/resilient, ultimately skewing more encouraging than prevailing concerns,” the analyst tells investors in a research note. The firm says that against lower expectations and a discounted valuation, it has comfort in its Buy rating.