Zscaler price target lowered to $140 from $160 at Cantor Fitzgerald

Cantor Fitzgerald lowered the firm’s price target on Zscaler to $140 from $160 and keeps a Neutral rating on the shares. Although Zscaler posted healthy Q2 results above consensus on revenue, EPS, and free cash flow, billings, which have been highlighted as a point of concern, have continued to put pressure on the business, the analyst tells investors in a research note. The firm believes that as soon as the macro environment normalizes, Zscaler will be in a leadership position to capture a sizable portion of the Zero Trust & Secure Service Edge market as customers look to consolidate non-core solutions.