Zscaler's (ZS) chief revenue officer transition poses minimal disruption risk and is unlikely to cause a go-to-market strategy pivot, RBC Capital Markets said in a Thursday note.
RBC expects a smooth transition following Ross Tackett's promotion to replace Mike Rich, noting the move was not driven by performance issues or internal disagreements.
Tackett previously ran worldwide sales and helped construct Zscaler's financial forecast, which already incorporated conservatism for prior sales leadership departures, RBC said.
Rich will remain as a strategic advisor through Dec. 31, while Tackett is scheduled to participate in the company's upcoming investor day on Oct. 6, the firm added.
RBC maintained its outperform rating on Zscaler and raised its price target to $236 from $210.
Shares of Zscaler were over 8% lower in Friday trading.
Price: 195.45, Change: -19.19, Percent Change: -8.94
