Zscaler price target raised to $165 from $135 at Loop Capital

Loop Capital raised the firm’s price target on Zscaler to $165 from $135 and keeps a Hold rating on the shares after its Q4 earnings beat. The company’s high-profile security platform peers reported lackluster booking results, but Zscaler showed strong sales execution, especially around large deals, the analyst tells investors in a research note. The recent field checks indicate that Zscaler continues to enjoy a reputation as the industry’s top sales organization, and its strong second half validates this notion, the firm added, though it also warns that the company’s s overall growth upside potential could have peaked given its industry checks that indicate that large organizations are likely to put greater emphasis on automating security operations going forward by leveraging analytics and generative AI.