Key points:
- Zscaler shares fell premarket
- The company announced its President has resigned
- Last week, EvercoreISI started ZS with an Outperform rating
Zscaler's stock price is down premarket after the company announced the resignation of Amit Sinha as President on Monday evening.
The tech company revealed that Dr. Sinha has accepted a CEO position at a privately held technology company and has resigned from Zscaler, effective October 21. However, he will continue as a member of the company's Board of Directors.
As a result, Zscaler's R&D, Cloud Operations and Customer Support departments will now report directly to Jay Chaudhry, the company's Chairman and Chief Executive.
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Dr. Sinha stated: “It has been my great honor to serve as President of the company and to partner with Jay and the Zscaler team over the last twelve years to build the leading cloud security provider.”
He added that the decision to leave “this incredible team was difficult” but remained “confident in Zscaler's continued success and industry leadership in the coming years.”
Chaudhry commented: “I'd like to thank Amit for his outstanding contributions to Zscaler over the past 12 years in multiple roles including most recently as President. His technical brilliance and people leadership has helped grow Zscaler into the market leader in cloud security.”
Zscaler shares are trading 3.4% lower ahead of Tuesday's open.
Last week, Zscaler was started at Outperform by Evercore ISI. Analyst Peter Levine set a price target of $235, labelling Zscaler as a “true disruptor” in next-gen cloud security. Moreover, he believes its long-tailed adoption will fuel consistent revenue growth and profitability.
Elsewhere, Zscaler was also initiated with an Outperform rating at SMBC Nikko, with analyst Carson Sippel setting a 220 price target. Sippel stated that Zscaler is uniquely positioned to benefit from an ongoing paradigm shift as businesses continue to adopt cloud and embrace hybrid and remote work.