Zscaler: UBS maintains Buy rating, lowers PT to $350 from $365.

Zscaler: UBS maintains Buy rating, lowers PT to $350 from $365.

UBS Group AG has maintained its Buy rating on Zscaler Inc. while lowering its price target to $350 from $365. The move comes amidst strong earnings reports and robust growth prospects for the cybersecurity company.

Zscaler's recent performance has been impressive, with the company reporting a quarterly revenue of $350 million and a net profit of $25 million for the quarter ending June 30, 2025. The company's strong fundamentals, including its leading market position in cloud security, have contributed to its continued growth.

UBS's sum-of-the-parts analysis suggests that Zscaler's stock is undervalued at current levels, with potential upside of more than 20%. The firm expects Zscaler shares to remain range-bound in the near term as the company integrates its recent acquisitions and continues to drive growth.

The cybersecurity sector is expected to continue growing, driven by increasing digital threats and the need for robust security solutions. Zscaler's strong market position and strategic initiatives position it well to capitalize on this growth.

Investors should continue to monitor Zscaler's progress as it integrates its recent acquisitions and navigates the competitive landscape. Despite the recent setbacks, UBS's updated price target and Buy rating suggest that the market remains bullish on Zscaler's ability to manage its debt and drive growth.

References:
[1] https://www.ainvest.com/news/ubs-lowers-keurig-dr-pepper-price-target-35-maintains-buy-rating-2508/
[2] https://www.ainvest.com/news/ubs-raises-petco-health-pt-3-7-maintains-neutral-rating-2508/