Barclays Upgrades Zscaler Stock and Forecasts 24% Upside, Citing Growth in Emerging Cybersecurity Segment


Zscaler Upgraded by Barclays, Predicts Growth in Cybersecurity Segment

Barclays has upgraded Zscaler, a cloud security company, to overweight and raised its price target from $176 to $190. This upgrade suggests a potential 24% increase from the previous closing price of $153.30. According to analyst Saket Kalia, the upgrade is based on Zscaler’s expanding Zscaler for Workloads platform and the growth opportunity in the secure access service edge (SASE) cybersecurity segment.

Growing Zscaler for Workloads Platform

Kalia highlights Zscaler’s growing platform for workloads as a key factor in the upgrade. This platform enables secure access to various workloads and helps protect them from potential cyber threats. The expansion of this platform contributes to Barclays’ positive outlook on Zscaler’s future performance.

Potential in the Secure Access Service Edge (SASE) Cybersecurity Segment

Barclays also recognizes the potential of the secure access service edge (SASE) cybersecurity segment and its impact on Zscaler’s growth. Kalia predicts that SASE cybersecurity could become as large as, or even larger than, regular network security protocols within three years. This projection positions Zscaler to benefit from the increasing demand for SASE solutions.

Zscaler’s Competitive Advantage

Kalia believes that Zscaler has a competitive advantage in the SASE market due to its first-mover status, particularly in secure web gateway and zero trust network access. Additionally, Zscaler’s expansive data center footprint and established presence with large enterprise customers contribute to its potential for gaining market share in the SASE cybersecurity segment.

Overall, Barclays’ upgrade and positive outlook on Zscaler are driven by the company’s growth prospects in both its expanding Zscaler for Workloads platform and the promising SASE cybersecurity segment. Zscaler’s stock has experienced significant growth this year, surging more than 46%.

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