Most of the time, when analysts come out in favor of a stock, it gets a little extra push as investors recognize its value. For cybersecurity stock Zscaler (NASDAQ:ZS), that’s definitely the case, as a little extra appreciation from analysts shot it up over 4% in Monday afternoon’s trading.
The word came out of Barclays, where analysts led by Saket Kalia bumped Zscaler from Equal Weight up to Overweight and also hiked the price target from $176 to $190. One of the biggest draws for Barclays analysts was the rise of secure access service edge, or SASE. SASE could ultimately prove a match for network security itself in terms of opportunity, and Zscaler is very much a leader in this sector. Since SASE already represents a market of between $5 billion and $9 billion and is expected to grow another 20% to 35% through 2026, it’s an opportunity in the making.
What’s more, some analysts have noted that Zscaler stock is “significantly undervalued,” using historical multiples and past performance adjustments as a guide. With remote work still very much a part of the landscape—much to the chagrin of companies demanding back-to-the-office programs—keeping up network security is going to be a big part of the overall tech landscape. While Zscaler is a leader in SASE, it’s also got a lot going on with cloud security, and that’s going to give it an edge too.
Is Zscaler a Buy, Sell, or Hold?
Zscaler enjoys substantial analyst support right now. Currently, Zscaler stock is a Moderate Buy by analyst consensus, with 20 Buy ratings and seven Holds to support the hypothesis. Meanwhile, Zscaler stock offers investors a 6.72% upside potential thanks to its average price target of $182.56.
