Truist Securities Buoyed by Zscaler (ZS)’s Emerging Business Growth, Affirms Buy Stance

Zscaler Inc. (NASDAQ:ZS) is one of the best tech stocks to buy for the long term. On September 9, analysts at Truist Securities reiterated a ‘Buy’ rating on the stock and a $350 price target. The positive stance follows meetings with the leadership team, during which growth in the emerging business segment was reiterated.

The management team also reiterated the company’s long-term platform strategy, even as it focuses on the Zero Trust Branch Offering. The Z-Flex licensing model, introduced less than two quarters ago, has emerged as a key growth driver due to its commitment-based subscription model, as opposed to the consumption or enterprise model.

In the fourth quarter of fiscal 2025, the Z-Flex program secured over $100 million in total contract value bookings, representing a 50% quarter-over-quarter increase. The increase was the catalyst behind Zscaler posting revenue of $719 million above consensus estimates of $706.95 million.

Zscaler Inc. (NASDAQ:ZS) is a cloud-based cybersecurity company that provides a Zero Trust Exchange platform to securely connect users, devices, and applications by replacing traditional network security with cloud-delivered services. It offers solutions that enable secure internet access and application connectivity for distributed workforces, eliminating the need for physical hardware.

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Disclosure: None. This article is originally published at Insider Monkey.