Zscaler upgraded to Buy from Hold at Jefferies

Jefferies upgraded Zscaler to Buy from Hold with a price target of $225, up from $170. The firm says that while the environment remains challenged, it has seen enough positive data to become increasingly positive on the high growth platforms. Despite outperforming year-to-date, the companies will continue to benefit from secular themes, the analyst tells investors in a research note. Jefferies views Zscaler as among the best positioned for the distributed and cloud-based world. the company is in the early stages of monetizing this opportunity with upside potential to estimates in fiscal 2024 supported by a “blossoming fed business,’ says the firm.