Zscaler (ZS) PT Lowered to $270 at UBS

UBS analyst Fatima Boolani lowered the price target on Zscaler (NASDAQ: ZS) to $270.00 (from $300.00) while maintaining a Buy rating.

The analyst comments "With expectations for F2H24 and even FY25 seemingly cooling off, we think the risk/ reward profile of the shares is looking more favorable. Further, if concerns over FY25 growth are accurate, we’d expect ZS to bias more towards profitability and would expect upside to margins (street is currently modeling 23.5% FCFm and 20% OpM in FY25F). At 8x FY25E EV/S and 30x EV/FCF, we think the shares are pricing in closer to mid-teens growth, which seems overly conservative in our view."

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