Benzinga - by Priya Nigam, Benzinga Staff Writer.
Cybersecurity company Zscaler Inc (NASDAQ:ZS) is considered a “Top Pick on the Zacks Analyst Blog.”
It’s also a leader in the SASE (Secure Access Service Edge) market, which is still in its "early innings," according to KeyBanc Capital Markets analyst Eric Heath.
The Zscaler Analyst: Heath upgraded the rating for Zscaler to Overweight, while establishing a price target of $220.
The Zscaler Thesis: The new price target reflects a "modest premium" to the over 20% growth group, Heath said in the upgrade note.
Check out other analyst stock ratings.
The analyst mentioned four reasons for the upgrade:
- While the landscape remains competitive, concerns are easing.
- The are catalysts to SASE adoption in the near term. "The Ivanti VPN vulnerability exploits, SASE tied #4 priority in our 1Q24 VAR survey (vs. #10 last quarter), and ongoing weakness in firewall suggests network security budgets may orient toward SASE."
- The channel and survey feedback during the first quarter has been positive.
- The stock is currently trading in-line with the over 20% growth group versus its historical two-year premium.
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Latest Ratings for ZS
| Mar 2022 | Daiwa Capital | Upgrades | Underperform | Buy |
| Feb 2022 | BMO Capital | Maintains | Outperform | |
| Feb 2022 | Deutsche Bank | Maintains | Buy |
View the Latest Analyst Ratings
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