Zscaler upgraded to buy at UBS, as market 'underappreciates' long-term bookings growth
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Zscaler (NASDAQ:ZS) shares are slightly higher on Monday morning, as UBS says the market is underappreciating the company's bookings growth and sales efficiency, which are both "strong indicators of sustainable 30% growth."
Analyst Roger Boyd raised his rating to buy, but lowered his price target to $350, down from $380, after speaking with 14 IT executives and 6 Zscaler customers and coming away with greater conviction of its growth prospects for this year.

"With shares off 30% since November peaks, we see an attractive entry point to a cybersecurity leader with strong fundamentals and close ties to evolving cybersecurity challenges," Boyd wrote in a note to clients.
Zscaler (ZS) shares were slightly higher at $261.90 early Monday morning and have gained more than 31% over the past year.
Boyd believes that Zscaler (ZS) has a number of growth levers to pull, including showing that it is a "strong strategic fit" in networking and cloud security; the possibility for secure access service edge consolidation, with Zscaler benefiting as contracts expire; and cloud protection via Workload communication, which has won contracts and interest from Zscaler's (ZS) customer base.
Last week, Zscaler (ZS) was named one of BTIG's top stock picks for 2022, with the investment firm noting the company is "sitting squarely in front of multi-year growth opportunity as companies increasingly adopt cloud-based network security solutions and because we are finding real evidence of tangential products gaining momentum."