Zscaler price target lowered to $165 from $175 at Stephens

Stephens analyst Brian Colley lowered the firm’s price target on Zscaler to $165 from $175 and keeps an Overweight rating on the shares following the company’s "mixed" fiscal Q2 report. Better-than-expected revenue and profitability were "overshadowed" by 34% billings growth that was roughly in line with consensus, said the firm, which notes that Zscaler said it saw increased budget scrutiny in January that resulted in additional large deal delays and that the company "fractionally raised" FY23 billings guidance as management is assuming sales cycles get slightly worse in the second half. While billings results were "disappointing," Stephens believes underlying demand remain strong and still views the company as "a best-in-class asset w/one of the most attractive secular growth stories in security."