Zscaler price target lowered to $230 from $260 at Oppenheimer

Oppenheimer lowered the firm’s price target on Zscaler to $230 from $260 and keeps an Outperform rating on the shares. The firm notes Zscaler reported strong Q4 results, beating estimates behind solid execution and better than expected GTM productivity. The company saw a record quarter for new/upsell billings, with growing contribution from emerging products. However, this was overshadowed by an uneven FY25 billings outlook, which implies a deceleration in the first half of 2025 before rebounding in the second half, Oppenheimer says. The firm believes the guide is largely due to past macro impacts causing billings to become back-half weighted, rather than a competitive or demand issue. Looking ahead, Oppenheimer sees an attractive FY25 setup forming with potential for upside as sales productivity improves and new products ramp through the year, and would be a buyer on the after-hours pullback.