Zscaler (NASDAQ:ZS) Stock Price Expected to Rise, Freedom Broker Analyst Says

Zscaler (NASDAQ:ZS) had its price target raised by stock analysts at Freedom Broker from $230.00 to $270.00 in a research note issued on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Freedom Broker‘s price target indicates a potential upside of 13.56% from the stock’s previous close.

A number of other brokerages have also recently commented on ZS. DA Davidson began coverage on Zscaler in a research report on Wednesday. They issued a “neutral” rating and a $215.00 price target on the stock. Mizuho set a $235.00 price objective on shares of Zscaler in a research report on Wednesday, October 7th. Morgan Stanley increased their price objective on shares of Zscaler from $165.00 to $185.00 and gave the stock an “equal weight” rating in a research note on Wednesday, October 7th. KeyCorp raised their target price on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a report on Friday, August 21st. Finally, Truist Financial reaffirmed a “buy” rating and set a $250.00 price target (up from $200.00) on shares of Zscaler in a report on Wednesday, October 7th. Thirty-seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $240.14.

Zscaler Price Performance

NASDAQ:ZS traded up $6.43 during trading hours on Thursday, reaching $237.76. 3,691,641 shares of the company were exchanged, compared to its average volume of 3,334,401. The company has a market capitalization of $38.77 billion, a P/E ratio of -609.64, a P/E/G ratio of 20.61 and a beta of 0.94. Zscaler has a 1-year low of $114.63 and a 1-year 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 business has a 50 day moving average of $194.52 and a 200 day moving average of $161.88.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for 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%. The company’s revenue was up 24.9% on a year-over-year basis. During the same quarter last year, the company earned $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. Research analysts forecast that Zscaler will post 0.69 EPS for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Adam Geller sold 23,958 shares of the business’s stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $225.43, for a total transaction of $5,400,851.94. Following the completion of the transaction, the insider owned 38,308 shares of the company’s stock, valued at approximately $8,635,772.44. The trade was a 38.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Chaudhry sold 2,852 shares of the stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $549,751.52. Following the completion of the transaction, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at $65,574,253.36. This trade represents a 0.83% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 54,053 shares of company stock worth $11,256,876. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of hedge funds have recently added to or reduced their stakes in the stock. Quintet Private Bank Europe S.A. grew its stake in shares of Zscaler by 4.5% during the third quarter. Quintet Private Bank Europe S.A. now owns 1,170 shares of the company’s stock worth $233,000 after buying an additional 50 shares during the last quarter. Triumph Capital Management boosted its holdings in shares of Zscaler by 6.3% during the 3rd quarter. Triumph Capital Management now owns 923 shares of the company’s stock valued at $184,000 after acquiring an additional 55 shares in the last quarter. NFSG Corp grew its position in Zscaler by 2.6% during the 3rd quarter. NFSG Corp now owns 2,437 shares of the company’s stock worth $486,000 after acquiring an additional 62 shares during the last quarter. Parkside Financial Bank & Trust grew its position in Zscaler by 18.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock worth $59,000 after acquiring an additional 66 shares during the last quarter. Finally, Elevation Wealth Partners LLC increased its holdings in Zscaler by 84.3% in the 3rd quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock worth $31,000 after purchasing an additional 70 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Data-security growth is expanding Zscaler’s opportunity. Data Security annual recurring revenue exceeded $500 million in the third quarter, while Zscaler’s tools appeared in approximately 70% of “Security for AI” deals in the fourth quarter. The company’s integrated platform may help enterprises protect sensitive information, win larger contracts and expand existing customer relationships. Zscaler’s Data Security Push: Can Its Security Tools Win More Deals?
• Positive Sentiment: Investor Day reinforced the long-term growth narrative. Zscaler reaffirmed its guidance and outlined a base case for more than $8 billion in ARR by fiscal 2031. The outlook prompted multiple price-target increases and helped support a roughly 14% share-price gain over the past month. Zscaler Just Gained 14% in a Month: Take Profits, or Buy More?
• Positive Sentiment: Broader software and cybersecurity sentiment has improved. Shares of Zscaler and other cybersecurity companies benefited as concerns about artificial-intelligence disruption eased, encouraging renewed interest in the sector. Zscaler and Tenable shares are soaring, what you need to know
• Neutral Sentiment: DA Davidson began coverage with a Neutral rating and a $215 price target. The target is below the recently cited trading level, suggesting valuation concerns despite the stock’s recent momentum. What’s Driving Zscaler Stock Higher Wednesday?
• Negative Sentiment: Pomerantz LLP is investigating potential claims on behalf of Zscaler investors. Although no findings or wrongdoing were reported, the investigation introduces legal and reputational uncertainty that could weigh on sentiment. Investor Alert: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Zscaler, Inc.

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that helps organizations secure access to applications, websites, data and other digital resources. Its platform is designed around a zero-trust security model, which verifies users and devices and enforces security policies before granting access, rather than relying primarily on a traditional corporate network perimeter.

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