BTIG keeps a Buy rating and $238 price target on Zscaler (ZS) but names the stock the firm’s Top Pick in Security & Infrastructure Software for 2025. The stock is “controversial”, with bears arguing that billings estimates for FY25 are at risk because guidance implies that growth needs to reaccelerate from 13% in Q1 back to 23% in the second half of the year, but the firm likes the stock because Zscaler is well positioned in the high growth SSE market, new product categories like Data Protection have potential to drive incremental growth, and the management’s go-to-market initiatives should drive improved productivity in the second half of this year, the analyst tells investors in a research note.
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