Zscaler price target lowered to $205 from $220 at BTIG

BTIG lowered the firm’s price target on Zscaler to $205 from $220 but keeps a Buy rating on the shares after its Q1 earnings beat but below-consensus guidance. The analyst states that while trends were positive, the big sticking point for investors from the call was commentary around linearity for the year, which implies a material deceleration in first half billings growth before reaccelerating in the second half of FY25. Most investors were braced for the full year guide and commentary calling for growth in the mid-to-high teens in the first half of the year, not the 13% guide, the firm added.