BMO Capital analyst Keith Bachman has maintained their bullish stance on ZS stock, giving a Buy rating today.
Keith Bachman has given his Buy rating due to a combination of factors, including Zscaler’s strong financial performance and promising growth prospects. The company reported robust RPO growth of 28% year-over-year, an improvement from the previous quarter, and exceeded expectations with its billings growth. This positive financial trajectory is further supported by management’s optimistic guidance for future fiscal years, with increased free cash flow estimates and a raised target price.
Moreover, Zscaler’s strategic focus on expanding its Zero Trust for Branch opportunities and maintaining its technology leadership amidst rising competition are key drivers of its long-term growth potential. The company’s ability to sustain demand across various geographies and sectors, including the federal vertical, despite uncertainties in government spending, underscores its resilience and market strength. These factors collectively contribute to Bachman’s confidence in Zscaler’s capacity to deliver durable growth, justifying the Buy rating.
In another report released today, Rosenblatt Securities also upgraded the stock to a Buy with a $235.00 price target.
ZS’s price has also changed moderately for the past six months – from $162.250 to $196.450, which is a 21.08% increase.
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