Zscaler price target raised to $200 from $170 at Evercore ISI

Evercore ISI raised the firm’s price target on Zscaler to $200 from $170 and keeps an Outperform rating on the shares after the company delivered a “strong” fiscal Q4 with a top and bottom-line beat. Given record level pipeline metrics entering FY24, it is clear that management is “baking in an extra layer of conservatism” with its initial revenue guidance. The firm, which says Zscaler “has historically beaten the midpoint of its initial revenue guide” by about 13% over the past five year, says that based on current demand trends and bookings metrics exiting Q4, it would expect the year to “end up closer to 36%-40%.”