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Supportive Fundamentals
Revenue growth of 21% YoY to $719.2 million, with ARR increasing to $3 billion.
Strong demand for AI-driven cybersecurity solutions, driving customer interest.
Analysts raising price targets, with Canaccord raising to $340, and sustained buy ratings.
Strategic acquisition of Red Canary enhances position in AI cybersecurity.
22% growth in Annual Recurring Revenue highlights sustained demand.
Points of Caution
GAAP net loss of $17.6 million, which, although an improvement, raises concerns about profitability.
Shares fell despite strong earnings, indicating market skepticism about sustainability.
Slower growth rate in calculated billings (32% up YoY), may indicate future revenue pressure.
Analyst sentiment remains mixed, with fluctuations in price targets across firms.
Growing Ransomware risks impacting cybersecurity spending and potential market parameters.
Impacting Factors
Recent strong financial results exceeded consensus estimates.
Rising concerns over cybersecurity breaches and solutions fostering demand for Zscaler's offerings.
Positive analyst upgrades and increased price targets bolster investor outlook.
Continuous innovation and growth in Zero Trust and AI cybersecurity bolster market confidence.
Technical Trend
Technical Rating : Strong Buy
Stop Loss : 5%
Profit Potential : 15%
Target Price : $350
Strategy Sp
