Zscaler's (ZS) artificial intelligence strategy and demand for its product portfolio position the company as a winner in the cloud security space, Wedbush Securities said in a note Sunday.

Traction in the Z-Flex program alongside the company's go-to-market efforts as well as incremental momentum from the Red Canary acquisition to deliver AI security offerings are improving the company's deal pipeline, according to the note.

The company's innovations to the Zscaler Digital Experience and its SPLX acquisition are expected to help its broader AI adoption strategy, the brokerage said.

"We continue to believe ZS is a well-positioned beneficiary of the AI Revolution with the company remaining a core name on the Ives AI 30 list," analysts wrote.

Wedbush raised its price target to $350 per share from $330, and reiterated its outperform rating on the stock.

Price: 325.48, Change: +5.47, Percent Change: +1.71