B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion

Zscaler, Inc. (NASDAQ:ZS) is one of the 10 Best Cybersecurity Stocks to Buy According to Short Sellers. According to a report by TheFly on May 22, B. Riley upgraded its rating on Zscaler to Buy from Neutral while lowering its price target to $225 from $275. The analyst attributed the upgraded rating to the company’s product line expansion and AI tailwinds.

Additionally, the analyst views demand for secure network access as “healthy.” In contrast, B. Riley said the lower price target reflects a reduction in software multiples in recent months.

On May 21, Zscaler announced its intent to acquire Symmetry Systems, Inc. in a bid to map and secure AI Agent Communication. The company emphasized that Symmetry Systems’ access graphs provide the foundational visibility security teams need to govern AI agent communication with applications, data, and one another at scale. It added:

“The access graph works by ingesting enterprise-wide access logs from SaaS applications, public cloud services, data stores, and AI systems, using AI to correlate them into an access graph displaying which identities are accessing which data and how. Combined with the Zscaler Zero Trust Exchange platform, this visibility will become the foundation security teams use to build and enforce the policies governing how AI agents communicate with applications, data, and one another.”

Zscaler, Inc. (NASDAQ:ZS) is a cloud-based enterprise security provider that helps global businesses adopt zero trust for secure digital transformation.

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