Zscaler price target lowered to $250 from $270 at UBS

UBS lowered the firm’s price target on Zscaler to $250 from $270 and keeps a Buy rating on the shares. Zscaler’s Q4 results were strong, with 27% billings growth and upside to both free cash flow and operating margin, but investors view the FY25 guidance for 19%-20% billings growth as a slight negative revision, the analyst tells investors in a research note. UBS is “puzzled” by the Q1 billings guidance which calls for 11% year over year growth, or down 44% quarter over quarter, saying the dynamic shouldn’t have changed vs. 90 days ago.