Bank of America Raises Zscaler's Price Target to $340 Amid Rising Platform Adoption

Bank of America analyst Tal Liani raised Zscaler's price target to $340 from $285, citing sustained customer demand and increasing platform adoption. The company's CEO highlighted strong trends, including 70% of new annual contract value from upselling to existing clients and 40% YoY growth in new logo ACV. Zscaler's recent acquisition of Airgap Networks and focus on Zero Trust solutions support its growth outlook.

Bank of America analyst Tal Liani has raised the price target for Zscaler Inc. (NASDAQ:ZS) to $340 from $285, while maintaining a Buy rating. This adjustment comes following the company's CEO, Jay Chaudhry’s, presentation at the Bank of America’s 2025 Global Technology Conference (GTC) on June 5. Liani cited sustained customer demand and increasing platform adoption as key factors contributing to the higher valuation [1].

During the GTC event, management highlighted several positive trends. In the last quarter, over 70% of new annual contract value (ACV) came from upselling to existing clients, while new logo ACV grew 40% year-over-year. Zscaler Inc. is expanding its reach beyond core secure web gateway services, with strong traction in data security and Agentic operations now representing nearly $1 billion in annual recurring revenue (ARR). Notably, data security alone accounted for $350 million in ARR last quarter [1].

The recent acquisition of Airgap Networks underscores Zscaler's deeper investment in cybersecurity advancements. While competition and pricing pressure remain, Zscaler’s product differentiation and focus on efficiency appear to be supporting its growth outlook. Liani's view is that rising demand for Zero Trust solutions justifies a higher multiple, primarily as Zscaler executes well on both innovation and customer expansion [1].

Zscaler Inc. is a provider of cloud-based cybersecurity solutions. Its Zero Trust architecture ensures secure connections between users, devices, and applications, regardless of location. The company's ability to maintain strong growth and innovation in the face of competitive pressures positions it favorably in the cybersecurity market [1].

References:
[1] https://finance.yahoo.com/news/bofa-raises-zscaler-zs-pt-145311338.html