Barclays Raises Zscaler (ZS) Price Target, Maintains Outperform Rating

On May 30, Barclays raised its price target on Zscaler Inc. (NASDAQ:ZS) to $290 from $275 and reiterated an Overweight rating following the company’s fiscal third-quarter results. The cybersecurity firm posted a $25 million beat on billings, which Barclays says will have a direct positive impact on its fiscal 2025 outlook.

In a note to clients, the firm pointed to the stronger-than-expected billings performance as a key signal of continued customer demand and healthy deal momentum. The upside in bookings provides greater visibility into revenue growth for the upcoming fiscal year, which Barclays views as a solid foundation for sustained performance.

Zscaler’s execution in the quarter appears to have bolstered investor confidence, particularly as enterprises continue to shift to cloud-native security solutions. Barclays highlighted the company’s product breadth and ability to land and expand within large organizations as important drivers of its growth story. While competition in the zero-trust market remains intense, the firm believes Zscaler’s positioning and platform strength give it an edge heading into fiscal 2025. The updated price target reflects both near-term execution and a favorable setup into the next year.

With stronger billings and a constructive tone from management, Zscaler looks well-positioned to navigate evolving market dynamics. Barclays maintains its optimistic stance as the company continues to capitalize on secular trends in cloud security adoption.

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Disclosure: None.