Zscaler price target lowered to $235 from $290 at Needham

Needham lowered the firm’s price target on Zscaler to $235 from $290 but keeps a Strong Buy rating on the shares. The company reported a strong Q4, but its initial FY25 billings guidance was in line and more back-half weighted than expected, the analyst tells investors in a research note. Despite the accelerating momentum from new and upsell business and promising progress behind the go-to-market transition, the initial FY25 outlook for 20%-21% growth fell shy of consensus, the firm added. Needham states however that it is a long-term buyer of the stock and believes that the current prices represent a substantial investment opportunity, noting that long-term investors will be rewarded for buying and holding onto these shares.