Zscaler (ZS) Use Case Highlights Multi Year Path to 30%+ Growth - Stifel

Stifel analyst Adam Borg reiterated a Buy rating and $335.00 price target on Zscaler (NASDAQ: ZS) after speaking with the CISO of a global, multi-billion dollar organization about its journey with Zscaler.

The analyst stated "The company’s initial Zscaler use case was to enable local internet breakouts for 300 branch locations as part of a broader SD-WAN implementation, which resulted in the company depreciating 300 existing firewalls at its branches. Moreover, a secondary use case quickly followed, as the company accelerated adoption of ZIA to directly connect users with apps/data for its tens of thousands of employees worldwide who were suddenly forced to work remotely during the pandemic. Overall, the company is happy with Zscaler across both use cases and is in process of piloting ZPA and exploring ZCP. Net/net, we offer a lot more details from our chat below and are pleased to hear of the positive feedback. More broadly, this vignette supports our belief that Zscaler is well-positioned to drive 30%+ top-line growth in coming years."

For an analyst ratings summary and ratings history on Zscaler click here. For more ratings news on Zscaler click here.

Shares of Zscaler closed at $270.71 yesterday.

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