Jun. 1 at 7:25 PM
Guggenheim sees 50% upside ahead for Zscaler
The recent selloff in Zscaler
has provided a buying opportunity, according to Guggenheim. The firm upgraded the stock to buy from neutral on Monday and instituted a price target of
$214 per share. That target implies 53% upside from Friday’s close.
Zscaler dropped roughly 24%, as of Friday’s close, since its May 26 third-quarter earnings report, analyst John DiFucci said in a note to clients.
“We believe the current level presents an opportunity to purchase a leader in an important, nascent security space at about the intrinsic value of the stock if it were run hyper-efficiently and never grew (or declined) again,” he wrote.
$ZS