Analyst Defends Zscaler's Technological Advantage Amid Microsoft's Access Proxy Market Entry
Portfolio Pulse from Anusuya Lahiri
Needham analyst Alex Henderson reiterated Zscaler Inc (ZS) with a Strong Buy and a $210 price target, stating that Zscaler's technology and market position make it a solid investment. Microsoft Corp's (MSFT) entry into the Access Proxy market with 'New Entra' products is seen as incremental and unlikely to shift the competitive landscape. Zscaler's access network offers superior security features compared to Microsoft's Proxy. JMP Securities analyst Trevor Walsh also reiterated Zscaler with a Market Outperform and a $225 price target.
July 13, 2023 | 7:22 pm
News sentiment analysis
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POSITIVE IMPACT
Zscaler's technology and market position are seen as strong, with a reiterated Strong Buy rating from Needham and a Market Outperform rating from JMP Securities.
The strong ratings from Needham and JMP Securities, along with the perceived technological advantage over Microsoft's new product, suggest a positive short-term impact on Zscaler's stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Cloudflare is mentioned as one of the companies whose products are superior to Microsoft's in the Access Proxy market.
While Cloudflare is mentioned as having superior products to Microsoft's, the news does not provide enough information to predict a specific short-term impact on its stock.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Palo Alto Networks is mentioned as one of the companies whose products are superior to Microsoft's in the Access Proxy market.
While Palo Alto Networks is mentioned as having superior products to Microsoft's, the news does not provide enough information to predict a specific short-term impact on its stock.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Microsoft's entry into the Access Proxy market with 'New Entra' products is seen as incremental and unlikely to shift the competitive landscape. Its products are considered to lag behind Zscaler's in terms of features and capabilities.
The perceived inferiority of Microsoft's new products compared to Zscaler's, as well as the view that its market entry is only incremental, suggest a negative short-term impact on Microsoft's stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80