Overview
- Zscaler shares, which fell about 8% Wednesday, hit a 52-week low near $128 after BTIG cut the stock to Neutral.
- BTIG removed its price target and dropped Zscaler from its top-picks list after field checks pointed to tougher rivals Cloudflare and Netskope.
- The firm also highlighted firewall vendors winning more secure access service edge upsells, saying Zscaler’s platform push is not landing as expected.
- BTIG trimmed its fiscal 2027 annual recurring revenue forecast to $4.355 billion, below the roughly $4.447 billion Wall Street view.
- Several firms stayed positive, with Cantor keeping Overweight and Wells Fargo starting coverage at Overweight, citing strong Q2 results that included 25.9% revenue growth to about $816 million, ARR of $3.36 billion, and raised guidance.