Oppenheimer starts ‘Zero Trust Leader’ Zscaler at Outperform

Oppenheimer analysts initiated research coverage of Zscaler (NASDAQ:) with an Outperform rating and a $180 per share price target that offers less than 20% upside.

Zscaler is described as a “Zero Trust” leader as its cybersecurity platform embodies a wide range of features.

The analysts’ bullish stance is based on: “(1) Zscaler’s exposure to favorable secular forces driving increased adoption of “zero trust” network architectures; (2) a large and expanding TAM across SSE and CNAPP markets; (3) an evolving channel partner ecosystem addressing enterprise and commercial segments; and (4) a significant up-sell opportunity with its evolving product portfolio,” they explained in a client note.

These elements could help drive Zscaler’s strong growth as the company keeps increasing the number of >$100K/>$1M ARR (annual recurring revenue) customers.

Zscaler shares are trading nearly 1% higher in pre-market Thursday.