Truist analyst Joel Fishbein upgraded Zscaler (ZS) to Buy from Hold with a price target of $225, up from $175. The analyst left recent meetings with management “extremely positive” about the company’s short-, medium- and long-term “durable growth profile.” Zscaler is benefiting from a favorable demand backdrop following the SolarWinds (SWI) hack and secular tailwinds of digital transformation, cloud security, and Zero Trust architecture, Fishbein tells investors in a research note. Further, the analyst’s conversations with customers indicate “large deals” will likely lead to upside to current consensus estimates. Fishbein thinks Zscaler can grow revenue by at least 40% over the next few years while “significantly expanding” margins.
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