Zscaler slips even as analysts say Q4 results show 'strong momentum'
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Zscaler (NASDAQ:ZS) shares slipped around 1.5% in pre-market trading on Wednesday after the cybersecurity company reported fourth-quarter results and guidance that led to praise from some on Wall Street.
Wedbush Securities analyst Dan Ives said the results and guidance showed "strong momentum in the field" as it continues to move further into the zero trust space and keep impressive margins. 
"Overall, [Zscaler] has remained resilient with its strong quarter/guidance despite the murky macro backdrop, seeing continued success for its zero-trust SaaS applications and cloud workload protection as we continue to believe [Zscaler] is a top name in this space to own as this cloud cyber security shift accelerates over the next 12-18 months," Ives wrote in an investor note.
Ives also boosted his price target to $185 from $160 after the results. 
BMO Capital Markets analyst Keith Bachman, who has an outperform rating, also raised his price target, following the results, which he said showed "healthy revenue growth."
"We believe that [Zscaler] can continue to post solid results with upside tension to guidance given a large and expanding [total addressable market]," Bachman wrote in an investor note. 
Looking ahead, Zscaler (ZS) expects to generate first-quarter revenue between $472M and $474M, with adjusted earnings per share between 48 and 49 cents. 
For the full-year, Zscaler (ZS) expects sales to be between $2.05B and $2.065B, with billings between $2.52B and $2.56B. Adjusted earnings are forecast to be between $2.20 and $2.25 per share.

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