Zscaler (ZS) faces increasing opportunities amid the emerging presence of artificial intelligence as enterprises face an accelerating volume of breaches, RBC Capital Markets analysts said in a note emailed Wednesday.
Customers acknowledge an urgent need for guardrails to deploy AI reliably but lack confidence in their current security capabilities, creates a favorable backdrop for Zscaler, analysts said.
The company believes it is well-positioned to deal with cybersecurity threats in the AI era, as its platform is built on a highly differentiated architecture unlike traditional security systems, RBC noted.
Analysts said that Zscaler's cloud security platform is well positioned to disrupt $20 billion of legacy security spend today, implying a total addressable market of over $72 billion.
RBC kept its outperform rating and $200 price target on the stock.
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