Zscaler price target raised to $185 from $162 at RBC Capital

RBC Capital raised the firm’s price target on Zscaler to $185 from $162 and keeps an Outperform rating on the shares. The company’s Q4 earnings beat shows that it is executing through what continues to be an uneven macro environment, with elongated sales cycles and budget scrutiny that are being balanced by a go-to-market motion stressing ROI focused security modernization and ultimately vendor consolidation, the analyst tells investors in a research note. The firm remains positive on Zscaler’s “combination of profitable growth”, which should create tailwinds as the macro backdrop improves.