Zscaler’s (ZS) Outperform Rating Reiterated at Royal Bank Of Canada

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reiterated by analysts at Royal Bank Of Canada in a note issued to investors on Wednesday, Benzinga reports. They currently have a $236.00 price target on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 11.61% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the company. Citigroup reiterated a “buy” rating on shares of Zscaler in a report on Wednesday. Cantor Fitzgerald raised their target price on shares of Zscaler from $225.00 to $275.00 and gave the company an “overweight” rating in a research note on Wednesday. Guggenheim lifted their price target on shares of Zscaler from $214.00 to $254.00 and gave the stock a “buy” rating in a research report on Wednesday. Piper Sandler increased their price objective on shares of Zscaler from $160.00 to $175.00 and gave the company a “neutral” rating in a report on Friday, September 4th. Finally, BMO Capital Markets lifted their target price on shares of Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $233.28.

Zscaler Price Performance

Shares of ZS stock traded down $0.80 during trading hours on Wednesday, reaching $211.45. 845,265 shares of the company were exchanged, compared to its average volume of 3,358,389. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The stock’s fifty day moving average is $181.94 and its two-hundred day moving average is $155.82. The company has a market cap of $34.48 billion, a price-to-earnings ratio of -542.20, a P/E/G ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last posted 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 firm had revenue of $898.19 million during 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 was up 24.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts forecast that Zscaler will post 0.7 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Robert Schlossman sold 5,394 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the sale, the insider owned 61,525 shares in the company, valued at $12,305,000. This represents a 8.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 661 shares of Zscaler stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $132,200.00. Following the transaction, the insider owned 38,308 shares in the company, valued at approximately $7,661,600. This 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. In the last quarter, insiders sold 29,053 shares of company stock valued at $5,610,165. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently modified their holdings of ZS. Bangor Savings Bank increased its stake in Zscaler by 2.0% during the 3rd quarter. Bangor Savings Bank now owns 8,273 shares of the company’s stock worth $1,650,000 after purchasing an additional 165 shares in the last quarter. Moody National Bank Trust Division lifted its stake in Zscaler by 57.8% in the third quarter. Moody National Bank Trust Division now owns 3,091 shares of the company’s stock valued at $616,000 after buying an additional 1,132 shares in the last quarter. CX Institutional boosted its holdings in shares of Zscaler by 15.9% in the third quarter. CX Institutional now owns 611 shares of the company’s stock valued at $122,000 after buying an additional 84 shares during the period. Versant Capital Management Inc increased its position in shares of Zscaler by 45.6% during the third quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock worth $46,000 after acquiring an additional 72 shares in the last quarter. Finally, Burkett Financial Services LLC bought a new stake in shares of Zscaler during the third quarter worth $27,000. Institutional investors own 46.45% of the company’s stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
• Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
• Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
• Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
• Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

About Zscaler

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.