Zscaler downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler downgraded Zscaler (ZS) to Neutral from Overweight with a price target of $260, up from $235. The company topped fiscal Q3 metrics and the back half of the year billings ramp appears “less daunting” given the quarterly performance, but the recent run in shares “have us mulling upside from here,” the analyst tells investors in a research note. The firm highlights Zscaler’s integrating an acquisition, pending guidance for the coming fiscal year and looming Fed uncertainty. As such, it believes investors should not chase the shares and look for more compelling entry points.