Zscaler price target lowered to $165 from $180 at Loop Capital

Loop Capital analyst Yun Kim lowered the firm’s price target on Zscaler to $165 from $180 and keeps a Hold rating on the shares after its Q1 earnings beat but below-consensus guidance. The company continues to execute well despite facing the same macro headwinds as its peers and making significant changes to its sales motion, the analyst tells investors in a research note. Zscaler finished the year at its lowest billings growth rate at 27% however and guided to a very conservative FY25 billings outlook, especially for the first half, and while the company has a history of issuing initial conservative billings growth outlook for the new year, some investors may not be patient to wait until the second half of the year to assess whether the company is making progress towards revamping its sales organization and its go-to-market motion, Loop added.