Shares of Zscaler Inc (NASDAQ:ZS) have been in focus after the company reported its fiscal third-quarter results and got its price target bumped higher by a Stifel analyst.
Zscaler has exposure to “favorable secular forces” that are fueling the adoption of “zero trust” network architectures, according to Oppenheimer.
The Zscaler Analyst: Ittai Kidron initiated coverage of Zscaler with an Outperform rating and a price target of $180.
The Zscaler Thesis: The company has a leading share in the cloud-based zero trust network architecture and its platform offers a wide range of features, “which effectively overcome multiple modern security challenges and increasing complexity,” Kidron said in the initiation note.
Check out other analyst stock ratings.
Zscaler’s total addressable market (TAM) stood at $9.5 billion in 2021 and “is projected to grow at a 20.0% five-year CAGR to $23.6B in 2026,” the analyst stated. “Zscaler has a large opportunity ahead, currently capturing only 13.3% of the TAM,” he added.
The company also has “a significant up-sell opportunity with its evolving product portfolio,” Kidron further wrote in the note.
ZS Price Action: Shares of Zscaler had risen by 3.6% to $150.15 at the time of publishing Thursday.
Now Read: AI-Powered ETF Dumps Nvidia In June For A FAANG Stock