Zscaler price target lowered to $220 from $266 at MoffettNathanson

MoffettNathanson analyst Sterling Auty lowered the firm’s price target on Zscaler to $220 from $266 and keeps an Outperform rating on the shares. The company produced the largest revenue upside surprise in over a year, generating 52% sales growth in the toughest macro backdrop seen for some time, but the stock traded off post earnings, reacting to billings growth of 34%, the analyst tells investors in a research note. The analyst believes the revenue growth is a better indicator of how Zscaler is executing, rather than the growth in billings.