On Friday, May 30, Needham raised the price target for Zscaler, Inc. (NASDAQ:ZS) from $240 to $310 and maintained a “Buy” rating. This decision follows the company’s strong results for its third quarter of fiscal year 2025, which exceeded analysts’ forecast in billings.
An employee standing in front of a large data center, looking toward the future of cloud security.
Needham noted that Zscaler, Inc. had a successful quarter. The company’s management decided to add all the extra billings from the third quarter to their full-year forecast and also slightly increased the billings forecast for the fourth quarter. This led to a strong beat-and-raise scenario. Moreover, Zscaler, Inc.’s Remaining Performance Obligations (RPO) Bookings grew by 36% compared to the previous year, reaching above the $1 billion mark.
Needham analysts pointed out the positive impact of Chief Revenue Officer, Mike Rich, who has helped Zscaler, Inc. expand its platform and update its go-to-market strategy. These changes seem to be working well as the company is now building stronger relationships with customers with an aim to get a bigger share of customer spending.
Zscaler, Inc. is an American cloud security company that offers a Zero Trust Exchange platform. It helps customers modernize security, streamline operations, and accelerate digital transformation.
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