MoffettNathanson analyst Sterling Auty says it has "been a tough week" for Zscaler (ZS), pointing to a report that privately-held Netskope had overtaken the company for the leadership position in the last Gartner report, followed by an article in the The Information that "sales arrogance was costing the company" and finally competitor Palo Alto Networks (PANW) reportedly offering certain solutions for free for up to two years to win business. However, the firm cautions "let’s not be too quick to throw the baby out with the bathwater" and tells investors that it still considers Zscaler to be "a very well positioned cyber security company" offering solutions that help customers save money. The firm is "staying the course" with its Outperform rating on Zscaler shares.
Published first on TheFly
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