Zscaler shares received a boost on Tuesday after Macquarie analyst Frederick Havemeyer raised his rating on the stock to Outperform from Neutral. Havemeyer believes the company will benefit from the “intensifying cyber threat landscape” and the upcoming data breach disclosure requirements from the Securities and Exchange Commission (SEC).
Improved Rating and Target Price
Havemeyer increased his target price on Zscaler shares to $231, up from $166. As a result, the stock saw a 1.8% increase, reaching $209.15, while the S&P 500 experienced a 0.1% increase. Zscaler stock has risen by an impressive 87% this year.
Zscaler’s Risk360 Software
The Macquarie analyst highlights Zscaler’s Risk360 software as a key contributing factor to its success. He states that it is strategically positioned at the intersection of cyber threats and SEC reporting requirements.
According to Zscaler’s website, Risk360 provides users with intuitive risk visualizations, detailed financial exposure information, board-ready reports, and actionable security risk insights. These features enable organizations to implement effective risk mitigation strategies quickly.
SEC Data Breach Reporting Rules and Risk360
Havemeyer emphasizes that the SEC’s new data breach reporting rules will come into effect next Monday. He believes that Zscaler’s Risk360 software will assist organizations in meeting these reporting requirements. By linking an organization’s cyber risk to its financial exposure, Risk360 enables companies to fulfill their disclosure obligations.
Under the new rule, companies must file a Form 8K within four business days after determining that a cybersecurity incident is considered “material.” The filing should include a description of the incident’s nature, scope, timing, and its material impact or reasonably likely material impact on the registrant.
In conclusion, Zscaler’s stock received a boost following an upgrade by Macquarie analyst Frederick Havemeyer. The analyst notes the company’s potential to capitalize on the growing cyber threat landscape and benefit from the SEC’s new data breach disclosure requirements. Zscaler’s Risk360 software is expected to play a crucial role in helping organizations meet these reporting obligations efficiently.