Selected stock price target news of the day - December 3rd, 2024

By: Matthew Otto

Zscaler Reports Q1 FY2025 Performance, Highlights Revenue Growth and Profitability Metrics

Zscaler delivered its financial results for the first fiscal quarter of 2025, reporting a non-GAAP earnings per share (EPS) of $0.77, exceeding analyst estimates of $0.63 by $0.14. Quarterly revenue reached $628 million, surpassing the consensus estimate of $605.43 million and representing a 26% year-over-year increase.

Other key metrics included a 13% growth in calculated billings to $516.7 million and a 27% increase in deferred revenue to $1.78 billion. Operating cash flow was $331.3 million, or 53% of revenue, while free cash flow totaled $291.9 million, or 46% of revenue.

Zscaler raised its full-year guidance, now expecting FY2025 EPS of $2.94 to $2.99, compared to the consensus estimate of $2.87. Revenue is projected to range from $2.623 billion to $2.643 billion, slightly above the consensus of $2.613 billion. For Q2 FY2025, Zscaler forecasts EPS of $0.68 to $0.69, in line with the $0.68 consensus, and revenue of $633 million to $635 million, compared to a $633.1 million consensus.

Evercore analyst, Peter Levine, remains optimistic, maintaining an Outperform rating and a $245 price target, reflecting confidence in Zscaler’s ability to capitalize on growing demand for cloud security and AI-driven solutions.

Analysts Adjust Ratings and Price Targets Following Q1 Results

Morgan Stanley analyst Hamza Fodderwala maintained an Equal-Weight rating and lowered the price target from $215 to $205.
Deutsche Bank analyst Patrick Colville reiterated a Buy rating and raised the price target from $200 to $225.
Canaccord Genuity analyst Kingsley Crane upheld a Buy rating and increased the price target from $220 to $230.
Needham analyst Mike Cikos initiated coverage with a Buy rating and a price target of $240.

Which Analyst has the best track record to show on ZS?

Analyst Keith Bachman (BMO) currently has the highest performing score on ZS with 19/22 (86.36%) price target fulfillment ratio. His price targets carry an average of $39.87 (25.37%) potential upside. Zscaler stock price reaches these price targets on average within 98 days.

Credo Technology Exceeds Q2 Estimates, Projects Up to 73% Revenue Growth for Q3 FY2025

Credo Technology Group Holding reported Q2 FY2025 results, posting a non-GAAP earnings per share (EPS) of $0.07, surpassing the consensus estimate of $0.05 by $0.02. Revenue reached $72.0 million, outpacing the analyst forecast of $67.15 million, marking a 20.6% increase and a 63.6% year-over-year growth.

GAAP gross margin was 63.2%, with the non-GAAP gross margin slightly higher at 63.6%. Operating expenses were reported at $53.9 million on a GAAP basis and $37.6 million on a non-GAAP basis. Credo concluded the quarter with a GAAP net loss of $(4.2) million, or $(0.03) per share, offset by a non-GAAP net income of $12.3 million, or $0.07 per share. Cash and short-term investments remained at $383.0 million.

Looking forward, Credo’s Q3 FY2025 guidance projected a revenue between $115.0 million and $125.0 million, exceeding the consensus estimate of $86.0 million. Gross margins are expected to remain strong, with GAAP margins forecasted between 60.6% and 62.6%, and non-GAAP margins ranging from 61.0% to 63.0%. Operating expenses are projected at $58.6 million to $60.6 million in GAAP and $42.0 million to $44.0 million in non-GAAP.

Analysts Respond Positively to Strong Q2 and Optimistic Guidance

Barclays analyst Thomas O’Malley maintained an Overweight rating and boosted the price target from $32 to $80.
Needham analyst Quinn Bolton reiterated a Buy rating and raised the price target from $43 to $70.
BofA Securities analyst Vivek Arya upgraded from Underperform to Buy and the price target from $27 to $80.

Which Analyst has the best track record to show on CRDO?

Analyst Richard Shannon (CRAIG HALLUM) currently has the highest performing score on CRDO with 4/4 (100%) price target fulfillment ratio. His price targets carry an average of $11.35 (42.59%) potential upside. Credo Technology Group Holding stock price reaches these price targets on average within 142 days.

Cytokinetics’ Aficamten NDA for Obstructive HCM Accepted by FDA, Paving the Way for Potential Approval by 2025

Cytokinetics announced that the FDA has accepted its New Drug Application (NDA) for aficamten, a cardiac myosin inhibitor targeting obstructive hypertrophic cardiomyopathy (HCM). The FDA assigned a standard review process with a PDUFA target action date of September 26, 2025 and does not plan to convene an advisory committee meeting.

The NDA is supported by results from the SEQUOIA-HCM Phase 3 trial. Which showed aficamten improved exercise capacity, symptom burden, and cardiac biomarkers in patients with HCM. Over 24 weeks, patients treated with aficamten experienced a significant increase in peak oxygen uptake (1.8 mL/kg/min). This is compared to no change in the placebo group (LSM difference: 1.74 mL/kg/min, p=0.000002).

Statistically improvements were also seen across 10 secondary endpoints, including reductions in left ventricular outflow tract (LVOT) gradient and improved functional class and quality-of-life scores. Serious adverse events were lower in the aficamten group (5.6%) compared to placebo (9.3%), with minimal instances of low left ventricular ejection fraction (LVEF <50%).

Aficamten has received multiple FDA designations, including Orphan Drug Designation in January 2021 and Breakthrough Therapy Designation in December 2021. Beyond SEQUOIA-HCM, the drug is being evaluated in ongoing trials like MAPLE-HCM, ACACIA-HCM, and CEDAR-HCM, targeting both obstructive and non-obstructive forms of HCM across diverse patient populations.

HCM affects an estimated 400,000 to 800,000 individuals in the U.S., with two-thirds diagnosed with the obstructive variant. SEQUOIA-HCM demonstrated aficamten’s potential to address myocardial hypercontractility and improve cardiac remodeling without adversely affecting systolic function, reinforcing its potential to reshape HCM treatment.

Analysts Maintain Positive Outlook Following NDA Acceptance

HC Wainwright & Co. analyst Joseph Pantginis reiterated a Buy rating and a $120 price target.
Needham analyst Serge Belanger reiterated a Buy rating and the price target at $72.
Mizuho analyst Salim Syed maintained an Outperform rating and raised his price target from $99 to $103.

Which Analyst has the best track record to show on CYTK?

Analyst Mayank Mamtani (B. RILEY) currently has the highest performing score on CYTK with 1/3 (33.33%) price target fulfillment ratio. His price targets carry an average of $43.59 (90.04%) potential upside. Cytokinetics stock price reaches these price targets on average within 50 days.