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Zscaler price target lowered to $197 from $208 at BMO Capital

BMO Capital lowered the firm’s price target on Zscaler to $197 from $208 but keeps an Outperform rating on the shares. The company’s Q4 results were “reasonable”, but the “back-end nature” of its FY25 billings guidance was disappointing, the analyst tells investors in a research note, noting that the outlook for the first half implies 13%-14% growth and greater contracted billings flowing through in the second half of the year. BMO adds however that the firm is encouraged by Zscaler’s expanding deal sizes and increasing contributions from emerging products, which it believes can increase over time.

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