ZS
Still a fan, just a less excited fan
KeyBanc analyst Eric Heath kept Zscaler on an Overweight rating, but lowered the price target from $220 to $160. That’s a pretty classic Wall Street move: same basic thesis, smaller victory lap.
Why you should care
For you, the key message is that a respected analyst still sees upside in the cybersecurity name, but is resetting expectations. A lower target can matter because it often nudges sentiment, especially in a stock that’s been hanging around where analysts love to argue over valuation like it’s the last slice of pizza.
What this really says about the stock
An Overweight rating means KeyBanc still thinks Zscaler can outperform. But trimming the target by nearly 30% suggests the easy upside may have already been eaten up, or at least the stock’s recent move made the math less comfy.
Big picture
This isn’t a thesis change so much as a reality check. Zscaler still has a believer in its corner — just one who’s telling investors to lower their expectations a notch.