Zscaler (ZS.US) drops over 16% after several Wall Street firms cut their price targets

Shares of cybersecurity company Zscaler (ZS.US) fell on Wednesday, down more than 16% at the time of writing to $161.5. Several Wall Street firms cut their price targets on the company after its Q4 earnings, with Needham analyst Alex Henderson cutting his target to $235; Baird analyst Shrenik Kothari cut his target to $225; Loop Capital analyst Yun Kim cut his target to $165.

The company reported Q4 revenue of $592.9 million, up 30% YoY, topping analyst expectations of $568.5 million; adjusted EPS of $0.88, topping analyst expectations of $0.70. The company expects revenue of $2.6 billion to $2.62 billion in fiscal 2025, below analyst expectations of $2.63 billion.

Zscaler focuses on providing cloud-based security solutions for enterprises. Its core product is a cloud security platform that helps businesses protect their users, applications, and data in internet and cloud environments.