Stifel Raises Zscaler Price Target After AI Strategy Reveal
Stifel increased its price target for Zscaler to $235 following the cybersecurity firm's analyst day detailing AI-driven growth and 2031 revenue targets.
Zscaler Inc. hosted its first analyst day since 2021, outlining a long-term strategy to secure AI agents and integrate AI into its zero-trust architecture. The company established a fiscal 2031 annual recurring revenue base case of over $8 billion, noting that AI tailwinds could push that figure to an upside target of $10 billion.
Financial projections for fiscal 2031 include an operating margin between 27% and 30% and a free cash flow margin of 29% to 32%. Zscaler estimated its total market opportunity at $220 billion and reaffirmed its targets for the first quarter and full year of fiscal 2027.
Following the event, Stifel raised its price target for the company to $235 from $200 and maintained a Buy rating, citing the company's AI prospects.
