BofA upgrades Zscaler to Buy on improving growth drivers

BofA upgraded Zscaler (ZS) to Buy from Neutral with a price target of $240, up from $215. The company reported “strong” fiscal Q2 results with billings up 18% and revenue up 23% year-over-year, driven by upsell and larger deal sizes, the analyst tells investors in a research note. The firm says Zscaler is showing “good signs” of successful diversification, solid order growth and improvement in upsell capabilities. The company’s key positives include a strengthening portfolio, especially on zero-trust and data initiatives, and ramp in sales productivity, following last year’s changes, contends BofA.