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- Zscaler (NASDAQ:ZS) shares are slightly higher on Monday morning, as UBS says the market is underappreciating the company's bookings growth and sales efficiency, which are both "strong indicators of sustainable 30% growth."
- Analyst Roger Boyd raised his rating to buy, but lowered his price target to $350, down from $380, after speaking with 14 IT executives and 6 Zscaler customers and coming away with greater conviction of its growth prospects for this year.
- "With shares off 30% since November peaks, we see an attractive entry point to a cybersecurity leader with strong fundamentals and close ties to evolving cybersecurity challenges," Boyd wrote in a note to clients.
- Zscaler (ZS) shares were slightly higher at $261.90 early Monday morning and have gained more than 31% over the past year.
- Boyd believes that Zscaler (ZS) has a number of growth levers to pull, including showing that it is a "strong strategic fit" in networking and cloud security; the possibility for secure access service edge consolidation, with Zscaler benefiting as contracts expire; and cloud protection via Workload communication, which has won contracts and interest from Zscaler's (ZS) customer base.
- Last week, Zscaler (ZS) was named one of BTIG's top stock picks for 2022, with the investment firm noting the company is "sitting squarely in front of multi-year growth opportunity as companies increasingly adopt cloud-based network security solutions and because we are finding real evidence of tangential products gaining momentum."