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Credit Suisse Upgrades Zscaler On Prospects Of Durable Growth

Credit Suisse Upgrades Zscaler On Prospects Of Durable Growth

Zscaler Inc (NASDAQ: ZS) is a leader in the cloud security space, and its differentiated architecture positions it to generate more durable growth, according to Credit Suisse.

The Zscaler Analyst: Credit Suisse upgraded Zscaler from Neutral to Outperform and raised the price target from $140 to $160.

The Zscaler Thesis: COVID-19 has proved to be a “more durable catalyst for cloud adoption,” Credit Suisse said in a Wednesday upgrade note.

Although some transformational projects have been downsized or postponed, Zscaler has been benefiting from COVID-19 disruptions in the near-term, and this trend could continue “as all organizations lean into cloud transformation,” the sell-side firm's analysts said. 

Credit Suisse's field checks suggest companies are “increasingly looking to reimagine security architectures, a dynamic we expect to culminate in durable growth, both near and long term.”

The analysts added that CRO Dali Rajic’s changes to the sales organization have been executed well, and “we continue to hear of strong execution from the field.”

Zscaler’s investments include hiring more representatives in fiscal 2021, “which should support durable growth despite tough comps in F2H21,” Credit Suisse said. 

ZS Price Action: Shares of Zscaler were up 4.77% at $147.93 at last check Wednesday. 

Latest Ratings for ZS

Jan 2021JMP SecuritiesInitiates Coverage OnOutperform
Jan 2021Credit SuisseMaintainsOutperform
Jan 2021NeedhamMaintainsStrong Buy

View More Analyst Ratings for ZS
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