May. 18 at 8:49 PM
Zscaler shares rose after B.Riley analyst Erik Suppiger upgraded the cybersecurity company from Neutral to Buy, while lowering the price target to
$225 from
$275 due to lower software valuation multiples across the sector.
The analyst cited strong demand for secure network access and AI adoption as key tailwinds supporting future growth. He also highlighted Zscaler’s expanding product portfolio, solid execution, and relatively attractive valuation as reasons for the upgrade, noting feedback from industry contacts that remains supportive of the company’s positioning in cloud security.
B.Riley added that Zscaler trades at about 6.8x forward enterprise value-to-revenue, well below its long-term IPO average of ~19x. The
$225 target assumes a 45x multiple on calendar 2027 earnings, still below peer averages despite comparable growth expectations.
$ZS