Zscaler (ZS) is expected to post modestly above-expected Q2 revenue, driven by growth in its Zscaler Internet Access and Zscaler Private Access cloud-native security services, Oppenheimer said in a note Thursday.

Despite competition in the mid-market, Zscaler continues to lead the high-end market in Secure Access Service Edge, especially in AI security, and that its Z-flex program is expected to expand adoption, Oppenheimer said.

The firm noted that clarity on ZIA and ZPA for annual recurring revenue growth is required to improve investor sentiment after the unclear Q1 performance.

Oppenheimer expects Q2 revenue to exceed market consensus by 1% to 2%.

Oppenheimer maintained its outperform rating and its $345 price target on the stock.

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