Zscaler (NASDAQ:ZS) Price Target Raised to $275.00

by · The Cerbat Gem

Zscaler (NASDAQ:ZS – Free Report) had its target price lifted by Cantor Fitzgerald from $225.00 to $275.00 in a report issued on Wednesday morning, MarketBeat Ratings reports. The firm currently has an overweight rating on the stock.

Other equities research analysts have also issued research reports about the company. Guggenheim reiterated a “buy” rating on shares of Zscaler in a research report on Friday, September 25th. JPMorgan Chase & Co. raised their price objective on Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 26th. TD Cowen reaffirmed a “buy” rating and issued a $200.00 price objective on shares of Zscaler in a research note on Friday, September 4th. Mizuho lifted their price objective on Zscaler from $210.00 to $220.00 and gave the stock an “outperform” rating in a research note on Friday, September 25th. Finally, Roth Capital reiterated a “neutral” rating and issued a $170.00 target price on shares of Zscaler in a report on Saturday, September 5th. Thirty-five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and an average price target of $239.41.

View Our Latest Report on ZS

Zscaler Price Performance

ZS stock opened at $233.73 on Wednesday. The company has a market capitalization of $38.11 billion, a P/E ratio of -599.31, a PEG ratio of 20.84 and a beta of 0.94. The company has a fifty day moving average price of $186.15 and a 200-day moving average price of $157.22. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99.

Zscaler (NASDAQ:ZS – Get Free Report) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, equities analysts expect that Zscaler will post 0.69 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, Director James Beer sold 177 shares of Zscaler stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total value of $33,985.77. Following the completion of the sale, the director directly owned 4,030 shares in the company, valued at approximately $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 661 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $132,200.00. Following the completion of the transaction, the insider directly owned 38,308 shares in the company, valued at approximately $7,661,600. This trade represents a 1.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 29,053 shares of company stock valued at $5,610,165 in the last 90 days. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ZS. BlackRock Inc. bought a new stake in Zscaler in the second quarter valued at $1,396,028,000. First Trust Advisors LP boosted its position in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Zscaler during the 2nd quarter worth about $102,271,000. Pictet Asset Management Holding SA grew its stake in shares of Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after buying an additional 661,413 shares during the period. Finally, Legal & General Group Plc acquired a new stake in shares of Zscaler in the 2nd quarter valued at about $89,740,000. 46.45% of the stock is owned by institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

  • Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
  • Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
  • Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
  • Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
  • Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
  • Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

About Zscaler

(Get Free Report)

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.

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