Zscaler price target raised to $260 from $230 at Truist

Truist raised the firm’s price target on Zscaler to $260 from $230 and keeps a Buy rating on the shares as part of a broader research note previewing Q4 results for the Infrastructure & Security Software group. Investor optimism about potential target rate cuts by the Fed has driven software valuations up significantly from their lows just over one year ago, while the firm’s conversations with customers and partners indicate stabilization in demand despite the challenging macro environment, the analyst tells investors in a research note. Truist adds that the firm sees many of its covered stocks in the group extend their beat-and- raise cadences against softer comps, warning however that the price for execution missteps could be high.