Zscaler (ZS) Gains Praise for CPS Potential and Strong Fundamentals

Zscaler Inc. (NASDAQ:ZS) is one of the best stocks to invest in, according to billionaire D.E. Shaw. On October 27, Citizens reaffirmed its Market Outperform rating and $355 price target on Zscaler (NASDAQ:ZS), citing emerging opportunities in the cyber-physical systems (CPS) space.

An IoT security executive called Zscaler a “sleeper pick” in CPS, citing its SOC focus and SRA solution as ways to enter the market. With 77% gross margins and 23% revenue growth, the company has strong financials to support expansion. Citizens also shared insights from a Global 2000 CISO who uses Zscaler for IT security but noted that OT segmentation is tough due to identity challenges, highlighting the complexity of CPS integration.

Earlier on October 20, Bank of America analyst Tal Liani reiterated a ‘Buy’ rating on Zscaler Inc. (NASDAQ:ZS) and lifted the price target to $355 from $340. The analyst remains confident in the company’s prospects, driven by heightened spending on AI infrastructure and enterprise security. According to the analyst, Zscaler continues to perform well across its key growth vectors, including AI security, Zero Trust, and data security. The analyst is also seeing strong traction in the company’s Z-Flex program, which grew 50% quarter over quarter in the fiscal fourth quarter.

Zscaler Inc. (NASDAQ:ZS) is a cloud-based security company that provides cybersecurity solutions by protecting user access to applications and data, regardless of location. It replaces traditional hardware-based security, such as VPNs and firewalls, with its cloud-native Zero Trust Exchange platform, which secures internet access and private applications.

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