Selected stock price target news of the day - September 4th, 2024

By: Matthew Otto

Zscaler Crushes Q4 Earnings Expectations but Issues Cautious FY2025 Guidance

Zscaler delivered its Q4 performance, reporting earnings per share (EPS) for the quarter of $0.88, surpassing the analyst consensus estimate of $0.70 by $0.18. Revenue for the quarter reached $592.9 million, exceeding the consensus estimate of $567.46 million.

Zscaler achieved $1 billion in quarterly bookings, and billings also rose 27% year-over-year, while operating margins reached approximately 22%. For the full fiscal year, revenue grew by 34%, and free cash flow increased by 75%, with a 27% free cash flow margin. Zscaler also reported $2.5 billion in annual recurring revenue (ARR) in Q4 and expects to achieve $3 billion or more in ARR in fiscal 2025.

Despite the performance, Zscaler’s guidance for FY2025 projects EPS to be in the range of $2.81 to $2.87, which falls below the consensus estimate of $3.01. For revenue, Zscaler estimates between $2.6 billion and $2.62 billion, aligning closely with the consensus estimate of $2.62 billion.

Looking ahead to Q1 2025, Zscaler expects EPS to be between $0.62 and $0.63, which is lower than the analyst consensus of $0.73. However, the company anticipates Q1 2025 revenue to be in the range of $604 million to $606 million, slightly above the consensus estimate of $603 million.

Analysts Reacts to Q4 Results with Mixed Price Target Adjustments

Cantor Fitzgerald analyst Yi Fu Lee maintained a Neutral rating, yet lowered the price target from $200 to $170.
Loop Capital analyst Yun Kim maintained a Hold rating while reducing the price target from $180 to $165.
Baird analyst Shrenik Kothari maintained an Outperform rating, although lowering the price target from $260 to $225.
Needham analyst Alex Henderson kept a Strong Buy rating but revised the price target downward from $290 to $235.

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

Analyst Keith Bachman (BMO) currently has the highest performing score on ZS with 16/21 (76.19%) price target fulfillment ratio. His price targets carry an average of $23.78 (12.91%) potential upside. Zscaler stock price reaches these price targets on average within 94 days.

Asana Beats Q2 Estimates, Weak Outlook Overshadows Earnings Call

Asana reported its fiscal second quarter of 2025, posting an EPS of ($0.05), which was $0.03 better than the analyst estimate of ($0.08). Also reported revenue of $179.2 million, slightly above the consensus estimate of $177.68 million.

Looking ahead, For Q3, Asana expects revenue between $180.0 million and $181.0 million, representing 8% to 9% year-over-year growth. A non-GAAP operating loss of $19.0 million to $18.0 million, equating to a 10% operating loss margin at the midpoint. Anticipates a non-GAAP net loss per share of $0.07, based on approximately 227 million shares outstanding.

For the full fiscal year 2025, Asana projects revenue between $719.0 million and $721.0 million, indicating a 10% year-over-year increase. A non-GAAP operating loss of $58.0 million to $55.0 million, with an 8% operating loss margin at the midpoint. Also expects a non-GAAP net loss per share ranging from $0.20 to $0.19.

Analysts Adjust Ratings and Price Targets Following Q2 Earnings

RBC Capital analyst Rishi Jaluria reiterated an Underperform rating with a $10 price target.
BofA Securities analyst Michael Funk maintained a Buy rating; however, reduced the price target from $18 to $16.
Baird analyst Rob Oliver kept a Neutral rating, and cut the price target from $20 to $13.
Piper Sandler analyst Brent Bracelin maintained a Neutral rating but lowered the price target from $14 to $12.

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

Analyst Brent Thill (JEFFERIES) currently has the highest performing score on ASAN with 12/13 (92.31%) price target fulfillment ratio. His price targets carry an average of $2.95 (22.61%) potential upside. Asana stock price reaches these price targets on average within 17 days.

GitLab Exceeds Earnings and Revenue Expectations for Q2 FY25, Raises Full-Year Guidance

GitLab reported its second quarter of fiscal year 2025, with earnings per share (EPS) of $0.15, surpassing the analyst estimate of $0.10 by $0.05. Revenue for the quarter reached $182.6 million, exceeding the consensus estimate of $176.88 million.

GitLab’s non-GAAP operating margin expanded by over 1,300 basis points year-over-year to 10%. The dollar-based net retention rate (DBNRR) was 126%, driven by 40% seat expansion, 50% increased customer yield, and 10% tier upgrades. GitLab also saw a 51% year-over-year increase in total remaining performance obligations (RPO) to $747.9 million and a 42% rise in current RPO (cRPO) to $475 million. GitLab’s SaaS revenue grew by 46%, now constituting 28% of total revenue.

For the third quarter of FY25, GitLab forecasts EPS of $0.15 to $0.16, exceeding the consensus estimate of $0.11, and expects revenue between $187 million and $188 million, slightly above the consensus of $187 million. Full-year FY25 guidance includes revenue expectations of $742 million to $744 million, surpassing the consensus of $736 million, and an EPS forecast of $0.45 to $0.47, above the consensus estimate of $0.36. Also reported a reduction in non-GAAP expenses related to its China joint venture, JiHu, forecasting approximately $14 million for FY25 compared to $18 million in the prior year.

Analysts Boost Price Targets Following Strong Q2 Earnings

Wells Fargo analyst Michael Turrin maintained an Overweight rating and raised the price target from $70 to $75.
Scotiabank analyst Nick Altmann retained a Sector Outperform rating and lifted the price target from $59 to $65.
BofA Securities analyst Koji Ikeda continued to rate a Buy rating, while increasing the price target from $66 to $68.
Baird analyst Shrenik Kothari kept an Outperform rating and adjusted the price target up from $59 to $62.
Needham analyst Mike Cikos reaffirmed a Hold rating.

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

Analyst Matthew Hedberg (RBC) currently has the highest performing score on GTLB with 13/19 (68.42%) price target fulfillment ratio. His price targets carry an average of $11.99 (22.62%) potential upside. GitLab stock price reaches these price targets on average within 163 days.