Zscaler price target raised to $244 from $238 at Bernstein

Bernstein raised the firm’s price target on Zscaler (ZS) to $244 from $238 and keeps an Outperform rating on the shares. Zscaler’s Q2 started to show clearer evidence that its investment in new sales talent and strategy is paying off, the firm says. Revenue beat consensus by nearly 1.9%, and it raised full year by the level of the beat, and billings came in 2.8% above consensus, but Bernstein says these are not the best part of the story. Instead, several really strong signals of the narrative told by the company started to become clear. Particularly with sales strategy changes entering their 2nd quarter and already showing productivity gains. And platform product traction beyond its core Zero Trust offerings, the firm adds.