Zscaler - Berenberg Analyst today

ZS : Berenberg leaves Zscaler sidelines • 11:04 AM

Berenberg upgrades Zscaler (NASDAQ:ZS) from Hold to Buy but lowers the target from $78 to $60.

Analyst Joshua Tilton came away from Zscaler’s user conference more confident and forecasting “continued sustained growth.”

The analyst says he has “never met a group of customers as positive about a product as these were about Zscaler’s.”

…The company has an Outperform average Sell Side rating.

The boldings are mine.



Berenberg is one of the world’s oldest banks going back to 1590. At least not a fly by not hit squad outfit.

I have been amazed at the quality of people they get out to come to Zenith after Zenith from Microsoft’s CEO, to GE’s CTO, to multiple smaller customers (small being relative).

Having a beloved product does not always mean great business (look at Pivotal - as far as we could tell they had one of the most beloved products in history of software, but only to a limited client base who cared). Zscaler’s appears to have much more mass appeal.

But yeah, at least we know it is a great product and does not “break” 365. Makes one wonder why a competitor, who specifically states that “Zscaler” is the competition at their last earnings call, would go so far as to put out there that Zscaler breaks Office 365?



at least we know it is a great product and does not “break” 365

Yeah, and for instance, here’s a page on Microsoft’s own site on configuring 365 for use with ZScaler: https://docs.microsoft.com/en-us/cloud-app-security/zscaler-…

If you work with both Cloud App Security and Zscaler, you can integrate the two products to enhance your security Cloud Discovery experience. Zscaler, as a standalone cloud proxy, monitors your organization’s traffic enabling you to set policies for blocking transactions. Together, Cloud App Security and Zscaler provide the following capabilities:

• Seamless deployment of Cloud Discovery - Using Zscaler to proxy your traffic and send it to Cloud App Security eliminates the need for installing log collectors on your network endpoints to enable Cloud Discovery.
• Zscaler’s block capabilities are automatically applied on apps you set as unsanctioned in Cloud App Security.
• Enhance your Zscaler portal with Cloud App Security’s risk assessment for 200 leading cloud apps, which can be viewed directly in the Zscaler portal.

BTW, there’s a similar page for competitor iBoss: https://docs.microsoft.com/en-us/cloud-app-security/iboss-in…

Gartner ranks Zscaler higher than iBoss in both axes, btw (Completeness of Vision and Ability to Execute).


On the ZenithLive Analyst Day MS presented and had nothing but praise for ZS