Truist Securities Buoyed by Zscaler (ZS)'s Emerging Business Growth, Affirms Buy Stance

Zscaler Inc. (NASDAQ:ZS) is one of the best tech stocks to buy for the long term. On September 9, analysts at Truist Securities reiterated a ‘Buy’ rating on the stock and a $350 price target. The positive stance follows meetings with the leadership team, during which growth in the emerging business segment was reiterated.

The management team also reiterated the company’s long-term platform strategy, even as it focuses on the Zero Trust Branch Offering. The Z-Flex licensing model, introduced less than two quarters ago, has emerged as a key growth driver due to its commitment-based subscription model, as opposed to the consumption or enterprise model.

In the fourth quarter of fiscal 2025, the Z-Flex program secured over $100 million in total contract value bookings, representing a 50% quarter-over-quarter increase. The increase was the catalyst behind Zscaler posting revenue of $719 million above consensus estimates of $706.95 million.

Zscaler Inc. (NASDAQ:ZS) is a cloud-based cybersecurity company that provides a Zero Trust Exchange platform to securely connect users, devices, and applications by replacing traditional network security with cloud-delivered services. It offers solutions that enable secure internet access and application connectivity for distributed workforces, eliminating the need for physical hardware.

While we acknowledge the potential of ZS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.