By Sam Boughedda
Investing.com -- Cloud security company Zscaler, Inc. (NASDAQ:ZS) has been upgraded by Daiwa analyst Stephen Bersey from Underperform to Buy based on security concerns.
Bersey said investors should "initiate new positions or add to existing holdings of Zscaler’s," which reported earnings last week, beating earnings and revenue estimates.
"With recent high-profile security attacks and Russia war concerns highlighting the importance of improving enterprise security, we believe that investors will become increasingly focused on security names like Zscaler and this may help to raise valuation judgements," explained the analyst.
Zscaler shares are down 0.8% Wednesday. However, they opened the session higher, having made solid gains in the previous two sessions.
"We believe that Zscaler is well positioned to grow revenue and earnings above market rates for the foreseeable future and that the stock represents an attractive growth component of investment holdings," added Bersey.
The Zscaler price target was also increased at Daiwan to $296 from $286.