Roth Capital has initiated coverage on Zscaler (ZS, Financial) with a Neutral rating and set a price target of $215. Analyst Taz Koujalgi's evaluation highlights that the company's net new annual recurring revenue has remained stable over recent quarters, signaling a potential plateau in growth. Additionally, the firm notes a significant slowdown in the momentum of Zscaler Internet Access (ZIA), a key product in the company's portfolio.
The analysis expresses caution due to a challenging competitive environment that could impact Zscaler's future performance. The company's recent slowdown in billings growth adds to the apprehension, suggesting potential difficulties in maintaining its previous growth trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 40 analysts, the average target price for Zscaler Inc (ZS, Financial) is $238.24 with a high estimate of $340.00 and a low estimate of $195.00. The average target implies an upside of 21.23% from the current price of $196.52. More detailed estimate data can be found on the Zscaler Inc (ZS) Forecast page.
Based on the consensus recommendation from 46 brokerage firms, Zscaler Inc's (ZS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Zscaler Inc (ZS, Financial) in one year is $291.69, suggesting a upside of 48.43% from the current price of $196.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Zscaler Inc (ZS) Summary page.
