Zscaler (NASDAQ:ZS) Price Target Raised to $240.00

Zscaler (NASDAQ:ZS) had its price objective raised by Wedbush from $215.00 to $240.00 in a research report sent to investors on Wednesday morning, MarketBeat.com reports. They currently have an outperform rating on the stock.

Other analysts have also issued reports about the stock. TD Cowen upped their price objective on shares of Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a research note on Wednesday. Mizuho lifted their target price on shares of Zscaler from $210.00 to $220.00 and gave the stock an “outperform” rating in a research report on Friday, September 25th. Stifel Nicolaus boosted their price target on shares of Zscaler from $175.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Scotiabank upped their price target on shares of Zscaler from $200.00 to $240.00 and gave the company an “outperform” rating in a research report on Monday. Finally, Sanford C. Bernstein raised their price objective on shares of Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. Thirty-five 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 MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and an average target price of $239.41.

Zscaler Stock Up 7.8%

Shares of Zscaler stock opened at $233.73 on Wednesday. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market capitalization of $38.11 billion, a PE ratio of -599.31, a price-to-earnings-growth ratio of 20.84 and a beta of 0.94. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock’s fifty day moving average is $186.15 and its 200-day moving average is $157.22.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. Zscaler’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same quarter last 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. Equities analysts anticipate that Zscaler will post 0.69 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Adam Geller sold 5,578 shares of the company’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,075,215.28. Following the transaction, the insider owned 43,553 shares in the company, valued at $8,395,276.28. This represents a 11.35% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 5,957 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the completion of the transaction, the chief financial officer owned 43,287 shares in the company, valued at $8,344,002.12. This represents a 12.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 29,053 shares of company stock worth $5,610,165. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Zscaler during the 2nd quarter valued at $1,396,028,000. First Trust Advisors LP increased its stake in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after acquiring an additional 935,781 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Zscaler during the second quarter worth $102,271,000. Pictet Asset Management Holding SA raised its holdings in shares of Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after acquiring an additional 661,413 shares in the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Zscaler during the second quarter worth $89,740,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

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

Zscaler Company Profile

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.