Credit Suisse analyst Brad Zelnick reiterated an Outperform rating on Zscaler and raised his price target to $55 from $46 following the company's quarterly results. In a research note to investors, Zelnick says he remains confident in Zscaler as a significant long-term winner in enterprise network transformation and security moving into the cloud.

Zscaler announced innovations - ZDX Copilot, Hosted Monitoring, and Data Explorer - to its Zscaler Digital Experience service. The new ZDX Copilot, an AI assistant, instantly analyzes and harnesses knowledge from over 500 trillion data points daily across users, devices, networks, and applications, to provide IT operations, service desk, and security teams insights they need related to digital experience and performance. Teams can ask sequences of questions to effectively converse with Copilot, which uses Generative AI, to review high-level trends and progressively narrow results down to specific actionable insights.