Zscaler (ZS) PT Raised to $340 at Canaccord Genuity

Canaccord Genuity analyst Michael Walkley raised the price target on Zscaler (NASDAQ: ZS) to $340.00 (from $300.00) while maintaining a Buy rating.

The analyst commented, "Zscaler reported strong Q4 results with revenue, billings, and profitability all ahead of our/Street estimates. Key positives from the print included (1) Billings grew 70%+ for the third straight quarter, (2) RPO grew an impressive 98% to $1.6B, (3) sales capacity continued to expand with increasing productivity and increasing contribution from the enterprise segment, (4) 128% DBNR driven by strong upsell, (5) ZDX is growing faster than even ZPA's initial growth and driving new customers. We believe Zscaler is increasingly well positioned for accelerating growth trends given its robust technology moat and accelerating platform uptake. In our view, the company is benefiting from numerous tailwinds including cloud migration, adoption of Zero Trust principles, and the rapid growth in targeted breaches and ransomware attacks. As a result, management has highlighted broader platform adoption trends in recent periods with increasing spend per customer as it targets a well-defined $72B+ bottoms-up TAM. We believe Zscaler is a core centerpiece of a robust cybersecurity framework and expect broader adoption to drive sustained 30%+ top-line growth. The company is poised to continue to gain share as a long-term disruptive technology, and we view the stock as a core long-term holding. Following the strong results and guidance, we reiterate our BUY rating and increase our estimates and PT from $300 to $340."

You May Also Be Interested In

• META to capture largest share of users, SNAP to benefit from ad budget shifts - Canaccord Genuity weighs in on TikTok ban
• Teradyne (TER) PT Raised to $125 at TD Cowen
• Amazon.com (AMZN) PT Raised to $215 at UBS