Make earnings with no risk
Automated AI-driven system makes the trades, you earn the money
Join now

Zscaler Inc. Cybersecurity Stock Shows Strong Rally


Zscaler Inc.’s shares experienced a significant surge on Tuesday following an analyst’s positive upgrade on the cybersecurity stock. The upgrade was based on increased confidence that the company will achieve its revenue targets as business spending begins to loosen up after a year of recessionary concerns.

Shares of Zscaler reached an intraday high of $156.33, marking a more than 5% increase, while the ETFMG Prime Cyber Security ETF rose slightly over 1% on Tuesday.

Upgraded to Buy with New Price Target

Gray Powell, an analyst at BTIG, upgraded the stock from neutral to buy and established a price target of $185. Powell’s decision was driven by his heightened level of confidence in Zscaler’s ability to sustain 30% or higher revenue growth in the coming years.

Powell’s positive outlook was supported by consistent positive feedback from various sources, including contacts, channel partners, analysts, and Fortune 500 chief information security officers responsible for their company’s financial decisions. This feedback, collected over the past few months, has led Powell to believe that demand in the Secure Service Edge (SSE) has significantly improved. Furthermore, large projects that were previously put on hold in late 2022 and early 2023 are now gaining momentum once again.

“In short, our fieldwork leads us to believe that demand in the Secure Service Edge (SSE) has sustainably improved and that large projects which were put on hold in late 2022 / early 2023 are starting to move forward again,” Powell stated in a note. “In addition, we left our work feeling confident in Zscaler’s ability to maintain its leadership position in the SSE market despite headlines on increasing competition.”

With this new upgrade and positive outlook, Zscaler Inc.’s future in the cybersecurity market appears bright.

Cloud Security Company F5 Inc. Reports Strong Earnings and Growth Prospects

Late Monday, cloud security company F5 Inc. revealed that its earnings surpassed expectations, bolstering confidence in its potential for double-digit non-GAAP earnings growth for fiscal 2023. Consequently, the stock experienced a remarkable surge on Tuesday, with shares rallying over 13% and reaching an intraday high of $167.89.

Zscaler’s Results Reveal Strength Amidst a Challenging Software Spending Environment

In June, Zscaler reported results and outlook that exceeded Wall Street’s expectations, signaling resilience in a difficult software spending landscape. Despite this positive showing, Zscaler’s shares faced downward pressure amidst the scrutiny faced by pure-play cybersecurity companies. Microsoft Corp.’s expansion into cybersecurity offerings raised concerns among analysts about potential long-term effects on companies such as Zscaler, Cloudflare Inc., Fortinet Inc., Check Point Software Technologies Ltd., and Palo Alto Networks Inc.

Cybersecurity Index and Other Market Indices

The HACK index, comprised of prominent cybersecurity firms, has witnessed a notable 17% increase in value this year. In comparison, the S&P 500 index has gained 19%, the tech-heavy Nasdaq Composite has surged by an extraordinary 36%, while the Dow Jones Industrial Average has advanced by 7%.

Lloyds Banking Group Q2 2023 Results

Previous article

NextPoint Financial Announces Restructuring Deal

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News