Zscaler rises as BTIG upgrades on improving demand
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Zscaler (NASDAQ:ZS) shares rose 2.5% in pre-market trading on Tuesday as investment firm BTIG upgraded the cybersecurity firm on better demand for secure service edge.
Analyst Gray Powell raised his rating on Zscaler (ZS) shares to buy from neutral, while also introducing a per-share price target of $185, pointing out the strength in recent field checks on SSE has "sustainably improved" and large projects that were put on hold last year and earlier this year are starting to "move forward again."
"In addition, we left our work feeling confident in ZS's ability to maintain its leadership position in the SSE market despite headlines on increasing competition," Powell wrote in an investor note. "And lastly, data points on emerging products (namely ZDX) were encouraging."
Analysts are largely bullish on Zscaler (ZS). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates ZS a HOLD.
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