Zscaler price target raised to $220 from $200 at Barclays

Barclays raised the firm’s price target on Zscaler (ZS) to $220 from $200 and keeps an Overweight rating on the shares ahead of the fiscal Q1 earnings report on December 2. The firm sees modest upside to Q1 billings estimates and thinks Zscaler will reiterate its fiscal 2025 billings guide to “de-risk” the second half acceleration. The “bear case” on the second half ramp won’t go away after the earnings report, but that could change after Q2 when investors have a path to a mid-20% exit rate in Q4, the analyst tells investors in a research note.