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Fly News Breaks for December 4, 2019
Dec 4, 2019 | 09:22 EDT
DA Davidson analyst Andrew Nowinski raised his price target on Zscaler to $58 and kept his Buy rating after its "solid" Q1 results, with revenue and billings topping the midpoint of prior guidance by 5% and 7% respectively. The analyst notes that the stock traded down about 5% afterhours as Q2 billings forecast implies a "significant" deceleration in growth, but wonders whether the management set that guidance too conservatively as comps in Q3 and Q4 become easier. Nowinski expects Zscaler to outperform in the coming quarter given the company's limited competition and increasing sales capacity.