Zscaler (ZS) PT Lowered to $220 at Mizuho

Mizuho analyst Gregg Moskowitz lowered the price target on Zscaler (NASDAQ: ZS) to $220.00 (from $225.00) while maintaining a Neutral rating.

The analyst commented: "Consistent with our checks on ZS that had up-ticked this quarter, the company reported a very solid F2Q, as billings growth of 18% Y/Y nicely exceeded our and the Street's 15% growth estimate. Revenue was also above consensus. GTM execution improved in the quarter, and large deal activity was healthy. Mgmt also cited double-digit growth in new and upsell activity. Meanwhile, F3Q guidance was in line, and mgmt modestly raised its full year outlook.

More broadly, we believe ZS remains well positioned within SASE/Zero Trust. However, as stated in our downgrade note last July, we're not confident that ZS can consistently close large, transformative deals, due primarily to the macro environment coupled with what we believe is an increasingly competitive SASE market. Reiterate Neutral and slightly lower PT to $220 (was $225) due to lower comp multiples."

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