Zscaler Soars on Analysts’ Earnings Praise

Zscaler  (ZS) – Get Report was up sharply Thursday as analysts heaped praise on the cloud-based network security platform after the company beat Wall Street’s fiscal first-quarter earnings expectations and raised its guidance. 

Shares of the San Jose, Calif.-based company were jumping 11.04% to $164.40 in pre-market trading.

Wedbush analyst Daniel Ives, who rates the company outperform, boosted his price target to $185 from $175, saying he believes Zscaler “looks to be in the driver’s seat on the cloud cyber security shift over the next decade.”

Zscaler reported non-GAAP net income of $20 million, or 14 cents a share, compared with $4.9 million, or 4 cents a share, in the year-earlier quarter. Revenue totaled $142.6 million, up 52% from a year earlier.

‘With strong execution and massive cloud tailwinds which have been accelerated in this COVID environment, ZS is helping drive cyber security transformative trends for enterprises across the board,” Ives said.

Morgan Stanley analyst Keith Weiss likewise raised his price target on Zscaler shares to to $150 from $123, saying the quarter showed “accelerating momentum into 2021,” with billings growth and free-cash-flow margins both ahead of expectations.

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