Zscaler Posts Q1 Beat: 8 Analysts Express Concern Around CFO Retirement, Guidance
Zscaler Inc (NASDAQ:ZS) shares tanked in early trading on Tuesday, even after the company reported upbeat fiscal first-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- Scotiabank analyst Patrick Colville reaffirmed a Sector Outperform rating, while raising the price target from $195 to $205.
- JMP Securities analyst Trevor Walsh maintained a Market Outperform rating, while lowering the price target from $270 to $240.
- BMO Capital Markets analyst Keith Bachman reiterated an Outperform rating, while raising the price target from $197 to $222.
- Oppenheimer analyst Ittai Kidron reiterated an Outperform Buy rating, while lifting the price target from $230 to $250.
- RBC Capital Markets analyst Matthew Hedberg an Outperform rating and a price target of $230.
- Stifel analyst Adam Borg reiterated a Buy rating and price target of $235.
- Needham analyst Mike Cikos initiated coverage of Zscaler with a Buy rating and price target of $240.
- Guggenheim Securities analyst John DiFucci maintained a Neutral rating on the stock.
Check out other analyst stock ratings.
Scotiabank: Zscaler’s billings rose 13% year-on-year in the fiscal first quarter. The fiscal 2025 guidance was “no doubt an underwhelming start to the year,” Colville said. CFO Remo Canessa‘s retirement “will add more uncertainty on Zscaler’s commitment to its F25 billings target,” he added.
The company’s profitability in the first quarter was healthy, suggesting “plenty of room to beat and raise through the remainder of the fiscal year,” the analyst stated. “While Zscaler is undoubtedly a tough story to love right now, we continue to wholeheartedly believe in our medium-term thesis, …
Full story available on Benzinga.com