Piper Sandler analysts upgraded Zscaler (NASDAQ:ZS) to Overweight from Neutral and increased the price target by $30 to $190 per share, resulting in a 4% rise in Zscaler's stock price intra-day today.

The upgrade is founded on the expectation that the company will continue to benefit from robust trends in security spending and the ongoing momentum in network transformation. The analysts believe that Zscaler will remain a primary beneficiary of the growing adoption of Secure Access Service Edge (SASE), representing a long-term growth driver for the company.

Furthermore, the platform approach of Zscaler is gaining traction, with its newer solutions demonstrating sustained momentum and scalability. The combination of strong growth prospects and improving margins positions Zscaler favorably for the fourth quarter and the upcoming year.