<div id="readability-page-1"><p>Shares of Zscaler (ZS) are surging today after five-star B. Riley analyst Erik Suppiger upgraded the cybersecurity firm's stock from Hold to Buy due to strong demand, a growing lineup of products, and a clear AI tailwind. Interestingly, though, B. Riley also lowered its price target from $275 to $225 to account for the overall drop in valuation multiples for software stocks in recent months. Nevertheless, investors focused more on the upgrade than the price target cut.</p><h3>Claim 55% Off TipRanks</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Discover top-performing stock ideas and upgrade to a portfolio of market leaders with  Smart Investor Picks  </li></ul> <p>Suppiger said that Zscaler has dropped more than 50% from its highs last November, partly because investors are worried that AI could hurt Software-as-a-Service companies. However, Suppiger does not think Zscaler faces much risk of being replaced by AI. He said that Zscaler has important advantages that would be hard for AI-generated software to copy, including its own private cloud network, the cybersecurity data it collects from a large customer base, and the trust it has built with customers as a secure platform.</p> <p>That is why Suppiger sees AI as more of an opportunity than a threat for Zscaler. As companies use more AI tools, they may need more secure cloud access and other cybersecurity services, which could support demand for Zscaler's products. He also admitted that competition is crowded and that slower organic growth has hurt investor sentiment. Still, he believes Zscaler can maintain its technology leadership due to its unique advantages and newer product lines. With AI becoming a bigger driver of demand, Suppiger thinks Zscaler can keep growing organic revenue close to 20% annually for the foreseeable future.</p> <h2><strong>Is ZS Stock a Good Buy?</strong></h2> <p>Turning to Wall Street, analysts have a Strong Buy consensus rating on ZS stock based on 29 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ZS price target of $225.70 per share implies 31.1% upside potential.</p></div>

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<p>Zscaler (ZS) shares surged after B. Riley analyst Erik Suppiger upgraded the stock from Hold to Buy, citing strong demand and AI as an opportunity. Despite lowering the price target from $275 to $225, investor focus remained on the upgrade. Suppiger believes Zscaler's unique advantages will help it grow organic revenue close to 20% annually, even amid crowded competition. Analysts maintain a Strong Buy consensus on ZS stock, with an average price target of $225.70, indicating a 31.1% upside potential.</p>

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Zscaler (ZS) Stock Jumps after 5-Star Analyst Says 'AI Is an Opportunity, Not a Threat'