Core Viewpoint - Mizuho upgraded Zscaler to Outperform from Neutral with a price target of $310, citing an improved risk-reward profile after a significant stock decline [1] Group 1: Stock Performance and Analyst Insights - Zscaler shares have weakened significantly despite a solid fiscal first-quarter performance, with fiscal second-quarter net new ARR guidance slightly below prior levels [2] - The recent acquisition of Red Canary did not contribute to the guidance, indicating a need for greater transparency regarding Zscaler's organic growth outlook [2] - The stock has declined approximately 31% since the end of October and 21% since the fiscal first-quarter earnings, suggesting that investors are now well compensated for the uncertainty [3] Group 2: Market Position and Valuation - Mizuho remains confident in Zscaler's strong positioning within the SASE and Zero Trust markets [3] - Zscaler is trading at a peak year-to-date EV-to-ARR discount relative to peers, highlighting a favorable valuation [3] - The company has a superior Rule of 50 score compared to many other high-growth software companies, reinforcing its competitive advantage [3]

Core Viewpoint - Salesforce's recent investor day revealed a new revenue target of over $60 billion for the fiscal year 2030, indicating a potential growth acceleration that has encouraged investor sentiment despite previous stock performance challenges [11][12][19]. Company Performance - Salesforce's stock has declined 29% year-to-date, reflecting broader pressures in the enterprise software sector and skepticism regarding its AI platform, Agent Force [3][4][5]. - The company has reported solid quarterly results but has not seen significant revenue growth from Agent Force, which raises concerns about its effectiveness [7][8]. AI Platform - Agent Force - Agent Force, Salesforce's AI platform, aims to replace human roles with digital agents, but Wall Street remains unconvinced about its success [2][5]. - Despite the initial rollout of Agent Force, there has been no meaningful uptick in revenue growth attributed to this platform [6][7]. Revenue Guidance - The new revenue target of over $60 billion for fiscal 2030 is higher than analysts' expectations of $58.4 billion, suggesting a compound annual growth rate of 10% over the next four years [12][13]. - This guidance implies a potential recovery in Salesforce's growth rate, moving from the current high single digits to low double digits [13][14]. Market Reaction - Following the announcement of the new revenue target, Salesforce's stock jumped 4%, marking its best single-day gain since May [14]. - The company also announced a $7 billion stock buyback, which represents approximately 3% of its outstanding shares, further boosting investor confidence [14][15]. Analyst Sentiment - While the new guidance has been viewed positively, some analysts remain skeptical, labeling the targets as "aspirational" and questioning the company's ability to achieve them [17][18]. - The onus is on Salesforce's management to deliver on these ambitious projections, as the market remains cautious [18][19].