Zscaler Stock Surges on Upgraded Outlook from Bernstein
Zscaler (NASDAQ: ZS) experienced a significant stock price increase of over 20% in the week following Labor Day, driven by an upgraded outlook from investment firm Bernstein. The firm raised its price target for Zscaler to $298 from $224 and maintained its 'outperform' rating, citing growing positive sentiment toward cybersecurity stocks and reasonable valuations within the sector. Bernstein's analysis highlights that while some previously undervalued cybersecurity stocks are now fairly priced, Zscaler still offers substantial upside potential. The stock is currently trading at a discount relative to historical multiples, with a price-to-operating cash flow ratio of 25.8 compared to its five-year average of 47.6. Despite the bullish outlook from Bernstein, other firms like Wedbush have taken more cautious stances by lowering their own Zscaler price targets recently.
Topics: Bernstein cybersecurity stocks price target increase Zscaler