- Analysts slashed their price targets on Zscaler Inc (NASDAQ:ZS) post Q2 results.
- Deutsche Bank analyst Patrick Colville lowered the price target on Zscaler to $280 from $430 (6.3% upside) and kept a Buy.
- After a "stellar run of near-flawless execution" by Zscaler, the company's fiscal Q2 report "was mixed."
- Federal contracts not closing, a lack of mega-deals, and duration contracting sequentially were called out as issues.
- BMO Capital analyst Keith Bachman lowered the price target on Zscaler to $270 from $415 (2.5% upside) to reflect the general compression in software multiples, particularly with aggressive growth names but keeps an Outperform. Though growth has been "fairly stable," given the elevated investor expectations for total billings growth, Zscaler will see some near-term pressure.
- Barclays analyst Saket Kalia lowered the price target on Zscaler to $257 from $310 and kept an Equal Weight rating.
- Price Action: ZS shares traded lower by 13.2% at $228.67 in the premarket on the last check Friday.
