Piper Jaffray analyst Rob Owens last night downgraded Zscaler to Neutral from Overweight with a $55 price target after assuming coverage of the name. While Zscaler has an impressive growth opportunity, execution and competitive risks coupled with its current valuation "leave little room for price improvement," Owens tells investors in a research note.

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.