Truist Financial Reaffirms Buy Rating for Zscaler with a $205 Price Target

Truist Financial remains bullish on Zscaler (NASDAQ:ZS), maintaining its 'buy' rating on the cloud security company's stock. A research note released by the investment analysts on Tuesday reiterates their confidence, with a target price set at $205. This target indicates a possible 2.58% increase from Zscaler's last closing price, according to a recent report by Benzinga.

Analyst Perspectives on Zscaler

Several other research firms have also shared their opinions on Zscaler's stock. Jefferies Financial Group upgraded Zscaler from 'hold' to 'buy,' raising its price target from $170 to $225. Citigroup also showed optimism, boosting their target to $190 and maintaining a 'buy' rating. Piper Sandler went a step further, enhancing their target from $190 to $220 and assigning an 'overweight' rating. Conversely, Macquarie adjusted their price objective from $135 to $160, keeping a 'neutral' stance. Furthermore, Stephens increased their target from $200 to $225, favoring an 'overweight' rating.

Overall consensus among analysts leans towards a 'Moderate Buy' for Zscaler, with an average price objective hovering around $193.46, based on data from MarketBeat.com.

Recent Performance and Insider Movements

The company commenced trading at $199.84 on the recent Tuesday. Key financial ratios such as a current ratio of 1.88 and a debt-to-equity ratio of 1.56 were reported, along with a market cap of $29.64 billion. Despite a negative P/E ratio and a beta of 0.81, the stock managed to hit a 52-week range between $84.93 and $207.78. Zscaler's latest earnings report surprised Wall Street, with earnings per share of $0.67, significantly exceeding the predicted $0.49. Revenue spiked to $496.70 million, marking a 39.7% increase year-over-year.

Regarding insider trading, COO Dali Rajic sold 22,000 shares, followed by disclosures of sales by CEO Jagtar Singh Chaudhry. Insiders have sold over 106,758 shares worth approximately $17,121,335 in the past three months. These sales suggest active insider trading in the company.

Institutional Investor Activity

Notable changes in Zscaler's ownership include hedge funds like Bank Julius Baer & Co., Vanguard Group Inc., and First Trust Advisors LP adjusting their holdings. Such movements indicate a continuing interest from institutional investors, who collectively own around 46.45% of Zscaler's stock.

About Zscaler

Zscaler, Inc. defines itself as a pioneer in cloud security, offering solutions that ensure secure access to internet destinations and internally hosted applications from various devices and locations. Its prominent services include Zscaler Internet Access and Zscaler Private Access, catering to a diverse clientele across the globe.

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