Zscaler price target lowered to $205 from $240 at Barclays

Barclays analyst Saket Kalia lowered the firm’s price target on Zscaler to $205 from $240 and keeps an Overweight rating on the shares ahead of the fiscal Q3 report on May 30. The firm models $584M of billings but says $600M looks possible and could ease concerns on the implied Q4 ramp. The analyst wants to be more positive on the shares into earnings, but wonders if fiscal 2025 Street billings growth of 23% needs to come down “for this to be easier to own.”