On Friday, BMO Capital Markets adjusted its outlook on Zscaler (NASDAQ:ZS), a leader in cloud-based security services. The firm increased the stock's price target to $208 from the previous $192, while maintaining an Outperform rating.
The upward revision follows Zscaler's performance in the April quarter, which surpassed expectations. The company's results have provided a more comfortable projection towards meeting its July quarter billing estimates. The analyst noted that Zscaler's April quarter success has smoothed the path to achieving these targets.
BMO Capital Markets highlighted Zscaler's growing revenue diversification as a key factor in its strong performance. The firm believes that the company's ability to expand its revenue streams through upselling, cross-selling, and securing larger contracts will contribute to sustained growth.
The confidence in Zscaler reaching its July quarter and fiscal year 2025 estimates has been reinforced by the recent quarter's results. This has led to the raised price target, signaling a positive outlook on the stock's future performance.
Investors and market watchers will likely keep a close eye on Zscaler's progress as it continues to navigate the competitive landscape of cloud security and strives to meet its financial goals.
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