ZS - Should Investors Worry About Zscaler's Deceleration? 12 Analysts Provide Takeaways | Benzinga
Shares of Zscaler Inc (NASDAQ: ZS) tanked in premarket trading on Friday, after the company reported higher-than-expected sales and earnings for the fiscal second quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
- Goldman Sachs analyst Gabriela Borges maintained a Neural rating, while raising the price target from $189 to $215.
- Wedbush analyst Daniel Ives maintained an Outperform rating, while raising the price target from $250 to $260.
- RBC Capital Markets analyst Matthew Hedberg reiterated an Outperform rating, while lifting the price target from $260 to $265.
- Cantor Fitzgerald analyst Yi Fu Lee reaffirmed a Neutral rating, while reducing the price target from $250 to $230.
- BMO Capital Markets analyst Keith Bachman maintained an Outperform rating, while cutting the price target from $268 to $255.
- Piper Sandler analyst Rob Owens reiterated an Overweight rating and price target of $255.
- Stifel analyst Adam Borg reaffirmed a Buy rating and price target of $270.
- Scotiabank analyst Patrick Colville maintained a Sector Outperform rating and price target of $250.
- JMP Securities analyst Trevor Walsh reiterated a Market Outperform rating and price target of $270.
- Truist Securities analyst Joel Fishbein reaffirmed a Buy rating and price target of $260.
- KeyBanc Capital Markets analyst Eric Heath reiterated a Sector Weight rating on the stock.
- Needham analyst Alex Henderson maintained a Strong Buy rating and price target of $290.
Check out other analyst stock ratings.
Goldman Sachs: Zscaler’s quarterly billings and margins were higher than the Street expectations, Borges said in a note. Management raised their billings guidance for fiscal 2024 by 1% and operating income by 10%, she added.
"We believe the stock’s performance in the premarket reflects concerns about the pace of deceleration in billings growth (from 37% in FY23 to 26% in FY24E) in an evolving competitive landscape,” the analyst wrote.
Wedbush: Zscaler delivered impressive top- and bottom-line beats "yet again as the company drives forward with momentum in the zero trust space while maintaining impressive margin discipline,” Ives wrote in ...