Zscaler Shares Nosedive, Then Rebound On Q1 Print: What 6 Analysts Say
Portfolio Pulse from Priya Nigam
Zscaler Inc (NASDAQ:ZS) shares experienced volatility after Q1 fiscal 2024 results, initially dropping in premarket trading but later rebounding. The company reported a 40% revenue growth and earnings of 67 cents per share, surpassing expectations. Analysts from Needham, Piper Sandler, Truist Securities, JMP Securities, Rosenblatt Securities, and Goldman Sachs provided their insights, with most maintaining or raising their ratings and price targets, citing strong performance and market position despite macro challenges. The reiteration of billings guidance due to new CRO and CMO hires and macro uncertainty led to a temporary decline in stock price.
November 28, 2023 | 5:01 pm
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Zscaler reported strong Q1 FY2024 results with significant revenue growth and earnings beat, leading to a mix of analyst ratings updates and price target changes. Despite initial stock price drop, the outlook remains positive.
The strong quarterly performance and positive analyst ratings, along with raised guidance, suggest a bullish short-term impact on Zscaler's stock price. The initial drop was likely a knee-jerk reaction to the reiteration of billings guidance, but the overall positive sentiment from analysts and the company's performance indicators point to potential stock appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100