Analysts have shown increasing optimism in Zscaler’s stock, with the average price target rising over the past year.
Mizuho Securities expresses caution due to profit pressures and deal closure delays, setting a lower price target of $210.
Zscaler’s revenue growth and operating margin expansion underscore its strong operating leverage and market position in cloud security.
Zscaler, Inc. (NASDAQ:ZS) is a leading company in the cloud security industry, providing solutions that secure internet access and private applications for businesses. The company is known for its innovative approach to cloud security, which has caught the attention of analysts. This is evident in the changes in the consensus price target for ZS stock over time.
Last month, the average price target for Zscaler’s stock was $250, indicating positive sentiment among analysts. This suggests confidence in the company’s growth prospects and market position. However, as highlighted by Mizuho Securities, Zscaler is facing profit pressures and delays in deal closures, leading to a cautious hold recommendation with a price target of $210.
Three months ago, the average price target was slightly lower at $236.64, showing a gradual increase in analyst optimism over the past quarter. This could be due to Zscaler’s strategic initiatives, such as enhancing its product offerings like Zscaler Internet Access and Zscaler Private Access. These solutions are crucial in today’s digital-first world, aligning with the growing demand for robust cybersecurity.
A year ago, the average price target stood at $218.08, reflecting an upward trend over the year. Analysts have become increasingly bullish on Zscaler’s potential, likely driven by its continued innovation and expansion in the cloud security space. The company’s Zero Trust Everywhere and AI-powered ZDX Advance Plus are key drivers of platform differentiation, enhancing customer efficiency and contributing to recurring revenue growth.
Despite the challenges, Zscaler has demonstrated a robust 23% year-over-year revenue growth, expanding operating margins, and an increase in large customer deals. These factors highlight its strong operating leverage and scalability. As the company continues to innovate and expand its reach, it will be interesting to see how analysts’ perspectives evolve in the future.
