Robert W. Baird analyst Shrenik Kothari has maintained their bullish stance on ZS stock, giving a Buy rating on February 28.
Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Zscaler’s strong market position and growth potential. The company is expected to deliver solid results, supported by robust channel and global system integrator checks, with an attractive fiscal year 2025 setup. This is despite some federal uncertainty, as Zscaler remains deeply integrated within federal sectors and is well-positioned to benefit from medium to long-term Zero-Trust trends.
Moreover, Zscaler’s go-to-market execution is improving, with a focus on account-centric strategies and emerging product momentum, particularly in Zero Trust and AI. The company’s competitive positioning and strong execution over the past year, evidenced by consistent revenue and billing beats, further support the positive outlook. Additionally, Zscaler’s valuation presents a meaningful discount compared to high-growth peers, making it an attractive investment opportunity.
In another report released on February 28, J.P. Morgan also maintained a Buy rating on the stock with a $240.00 price target.