Zscaler (NASDAQ: ZS) shares rallied sharply on Monday, climbing more than 8% to close at $174.69 — up $13.64 from the prior session’s close of $161.05 — after a pair of bullish analyst calls rekindled investor enthusiasm for the cybersecurity company.
B. Riley analyst Erik Suppiger led the charge, upgrading Zscaler to Buy from Neutral and setting a price target of $225, though that figure was trimmed from a prior target of $275.
Suppiger cited “healthy” demand for secure network access, Zscaler’s expanding product portfolio, and growing artificial intelligence tailwinds as the key drivers behind the upgrade. He acknowledged that the reduced price target reflects a broader compression in software valuation multiples seen in recent months.
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Adding further momentum, KeyBanc Capital Markets raised its price target on Zscaler to $190 from $160 while maintaining an Overweight rating.
The firm pointed to Zscaler’s Mythos platform — launched in early April — as a meaningful catalyst, noting that recent customer conversations suggest Mythos is driving a significant increase, and in some cases a pull-forward, of spending. KeyBanc expects off-quarter security earnings to be broadly healthier than on-quarter, and said its improved outlook on forward security demand underpinned the target hike.
The dual analyst endorsements signal growing confidence on Wall Street that Zscaler is well-positioned to capitalise on enterprise demand for AI-powered security infrastructure, even as the broader software sector navigates a more cautious valuation environment.
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