Scotiabank Increases Target Price for Zscaler, Inc.
The demand for cloud-based internet security platforms has been on the rise in recent years. This is evident with companies like Zscaler (NASDAQ:ZS) that have been at the forefront of providing adequate solutions to safeguard businesses against cyber threats. As a result, investment analysts at Scotiabank have noted the company’s potential and have raised its target price from $138.00 to $150.00.
Zscaler provides a variety of products and services such as Zero Trust Exchange, Zscaler Client Connector, Zscaler Internet Access, Zscaler Private Access, Zscaler B2B, Zscaler Cloud Protection, and Zscaler Digital Experience. These offerings ensure that businesses are protected from cyber-attacks by providing secure access to their data over the internet.
In March 2021, the company released its quarterly earnings data showing an impressive performance. Despite a negative return on equity of 50.58% and a negative net margin of 24.08%, the company reported $387.60 million in revenue during the quarter; this surpassed analysts’ projected revenue figure of $363.80 million. Further good news came as they beat consensus estimated EPS figures by posting ($0.35) per share compared to projections for ($0.43).
It is projected that ZScaler will post -1.19 EPS for the current year but with this latest assessment news in mind investor confidence in its stock is expected to grow even more as it hopes to continue with this upward trend.
With these strong figures backing up their growth potential, it’s no surprise that investment analysts have increased their target price for Zscalerto suggest an upside of 6.69% from its current standing on NASDAQ:ZS stock exchanges.
Investors are now keeping close tabs on how quickly this internet security platform provider continues to gain ground in providing industry-specific solutions for businesses worldwide. Zscaler has been recognized not only as a leading cybersecurity provider but also as a leader in innovation and client satisfaction with its user-friendly systems so this new price target may well be hitting the mark.
Updated on: 04/06/2023
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Loop Capital Markets
Zscaler’s Growing Importance in the Cybersecurity Landscape: A Market Analysis
In a rapidly changing technological landscape, cybersecurity has become an increasingly pressing concern. Therefore, the importance placed on companies like Zscaler in providing cloud-based internet security platforms has grown exponentially. On Friday, NASDAQ:ZS opened at a market price of $140.60 per share and boasted a market cap of $20.40 billion with a P/E ratio of -61.40 and beta standing at 0.84. The company’s 12-month high of $194.21 and low of $84.93 shows relatively quick growth over time.
Several research firms have issued reports on ZS recently, including Wells Fargo & Company who reduced their target price from $160 to $156, netting the stock an “overweight” rating; Cantor Fitzgerald who increased their price target from $140 to $145; Needham & Company LLC with their strong recommendations for Zscaler priced at $210 per share; JPMorgan Chase & Co., upgrading their target price from $129 to $146; and Robert W. Baird dropping their target price from $180 to $165 marking the only reduction amongst ratings given.
As for insider-trading activities amongst its executives, CEO Jagtar Singh Chaudhry sold 900 shares for approximately just shy below six figures whereas insider Robert Schlossman sold the same number of shares (3,645) in mid-March, settling at an average price point of $106.79 with values worth almost 400k dollars each.
When examining shareholder pollicies however, despite insiders having sold nearly six figures’ worth of shares within three months’ time since March alone totaling up to about 1.7 million initially stakes were acquired instead by other large investors within a variety companies such as Macquarie Group Ltd., ProShare Advisors LLC among others in recent times.
In conclusion, cybersecurity infrastructure has become ever-increasingly vital amidst these evolving times. Therefore the demand for cybersecurity providers like Zscaler, which offers Zero Trust Exchange, Client Connector, Internet Access, Private Access has strengthened significantly. Furthermore, recent shares purchased and entities holding onto unchanged shares are both representing positive news for its growing market in this highly-valued day and age of technology driven risk management standards.