Why Zscaler Stock Slumped on Wednesday
On Hump Day, numerous stocks bucked the generally bearish turn of the market, but Zscaler (NASDAQ: ZS) wasn't one of them. The cybersecurity company's share price fell marginally (by 0.3%) on the back of an assertive price target cut from an analyst tracking the stock.
The cutter was Credit Suisse prognosticator Sami Badri. Wielding a very sharp pair of scissors, he reduced his Zscaler estimate to $165 per share from his previous $275. That doesn't mean he's now a Zscaler bear, though, as despite the deep cut he maintained his outperform (i.e., buy) recommendation on the stock.
The reasons for Badri's substantially reduced Zscaler expectations weren't immediately apparent, but it's surely no coincidence that his change comes mere weeks after the company's latest earnings release.
Source Fool.com
