Zscaler (ZS): New Buy Recommendation for This Technology Giant
Stifel Nicolaus analyst Adam Borg maintained a Buy rating on Zscaler (ZS) with a $200 price target. The company reported Q4 revenue of $850.48M and a GAAP net loss of $13.88M, compared to $678.03M revenue and $4.13M loss a year ago. Analysts' consensus is Strong Buy with a $197.42 target.
How this was made
The 30-second read
Why it matters
The earnings beat and raised target could trigger short covering and new buying.
Market read
Earnings and analyst upgrade may influence cybersecurity sector sentiment.
What to watch
Potential margin pressure from continued losses.
Background
Zscaler is a cloud security platform provider; recent earnings show accelerated growth.
Ticker impact
Zscaler reported Q1 revenue of $850.48M and a GAAP loss of $13.88M, and Stifel Nicolaus set a $200 price target.
Potential upside of 5-7% over the next week.
Strong revenue growth and a higher price target suggest bullish sentiment.
Market effects
Positive signal for the cybersecurity sector.
U.S. tech stocks may see modest gains.
Limited to investors tracking cloud security firms.
Counterpoint
Valuation may still be stretched despite revenue growth.
Key entities
- CompanyZscaler
Cloud security firm
- Analyst FirmStifel Nicolaus
Issued a Buy rating and $200 price target
