Shares of cybersecurity provider ZScaler (ZS) - Get Report were rising slightly Monday afternoon after analysts at Mizuho Securities raised the company's price target amid demand trends that "look very favorable."
ZScaler now has a buy rating and $250 price target, up from $225, as analysts at the firm are "quite optimistic" that recent high profile cyber attacks will be a catalyst for additional security spending.
"This catalyst will likely be greater than many expect," Mizuho analyst Gregg Moskowitz said.
ZScaler shares were rising 0.4% to $228.76 in afternoon trading Monday at last check.
In late May, ZScaler shares jumped after the company reported a wider fiscal-third-quarter loss but stronger-than expected revenue and adjusted profit.
Moskowitz is bullish on multiple cybersecurity companies, raising the price target of CrowdStrike Holdings (CRWD) - Get Report to $295 from $255 with a buy rating, raising Okta's (OKTA) - Get Report target to $275 from $255 with a neutral rating and Cloudflare's (NET) - Get Report to $96 from $77 with a neutral rating.
The San Jose, Calif., company's fourth-quarter revenue outlook also exceeded expectations while its adjusted-profit view was just below estimates.
For the quarter ended April 30, ZScaler posted a loss of 43 cents a share compared with a loss of 15 cents a share in the year-earlier quarter. Excluding special items, the latest adjusted profit was 15 cents a share.
Revenue reached $176.4 million, up 60% from $110.5 million a year earlier.
A survey of analysts by FactSet produced consensus estimates of a GAAP net loss of 45 cents a share, or an adjusted profit of 7 cents a share, on revenue of $163.7 million.