Zscaler (ZS) continues to see robust demand for its zero-trust security offerings amid growing enterprise adoption of artificial intelligence, Wedbush said in a Friday research report.

Improved sales productivity is driving a strong pipeline, reflecting the critical nature of the company's services, according to the note.

Z-Flex total contract value bookings continue to show "massive strength," driving shorter sales cycles and better visibility as the company expects Z-Flex to be a growth driver in H2, analysts wrote.

The brokerage said the company is well-positioned to be an AI winner, citing its product innovation, strategy, and go-to-market engine.

The brokerage said it maintained its outperform rating and cut its price target to $300 per share from $350.

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