Zscaler (NASDAQ:ZS) Stock Rating Reaffirmed as Neutral by BTIG Research

Zscaler (NASDAQ:ZS)‘s stock had its “neutral” rating reaffirmed by analysts at BTIG Research in a research note issued to investors on Wednesday, Benzinga reports.

A number of other research firms also recently issued reports on ZS. Stifel Nicolaus lifted their price target on Zscaler from $175.00 to $200.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. Sanford C. Bernstein increased their price objective on Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. Robert W. Baird raised their target price on Zscaler from $230.00 to $285.00 and gave the company an “outperform” rating in a report on Wednesday. Cantor Fitzgerald lifted their target price on Zscaler from $225.00 to $275.00 and gave the company an “overweight” rating in a research report on Wednesday. Finally, Needham & Company LLC lifted their target price on Zscaler from $215.00 to $255.00 and gave the company a “buy” rating in a research report on Wednesday. Thirty-five investment 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. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $238.07.

Zscaler Stock Performance

ZS opened at $216.81 on Wednesday. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The company has a market cap of $35.35 billion, a price-to-earnings ratio of -555.92, a PEG ratio of 22.25 and a beta of 0.94. The company’s fifty day moving average price is $184.50 and its two-hundred day moving average price is $156.69. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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%. The business’s revenue was up 24.9% on a year-over-year basis. During the same period last year, the company earned $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. On average, analysts expect that Zscaler will post 0.7 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, Director James Beer sold 177 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $192.01, for a total value of $33,985.77. Following the completion of the sale, the director owned 4,030 shares in the company, valued at approximately $773,800.30. This trade represents a 4.21% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 Zscaler stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $549,751.52. Following the transaction, the chief executive officer directly owned 340,186 shares in the company, valued at approximately $65,574,253.36. This 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. Insiders sold a total of 29,053 shares of company stock worth $5,610,165 in the last ninety days. 17.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Handelsbanken Fonder AB increased its position in shares of Zscaler by 89.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock valued at $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Zscaler by 6.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock worth $27,284,000 after buying an additional 11,941 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after buying an additional 239,326 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab bought a new position in Zscaler during the second quarter valued at about $11,232,000. Finally, Amundi grew its position in Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after buying an additional 129,563 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: At its investor day, Zscaler reaffirmed its fiscal 2027 first-quarter and full-year guidance, helping ease concerns about recent go-to-market leadership changes. Management highlighted AI security, new customer entry points, cross-selling and an ambition to exceed $8 billion in organic annual recurring revenue by fiscal 2031. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Wall Street largely responded favorably: UBS, Truist, JPMorgan, Needham, Cantor Fitzgerald, Baird, Wedbush and BNP Paribas Exane raised targets, with several maintaining buy or outperform ratings. Targets generally range from $236 to $285, implying additional upside from recent trading levels. Wall Street sees 29% upside for Zscaler
• Positive Sentiment: A new IBM and Red Hat partnership will combine Zscaler’s Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows, including attacks assisted by AI. The agreement could expand Zscaler’s enterprise reach and reinforce its AI-security growth narrative. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Analysts see strong long-term potential from AI security, broader product adoption and cross-selling, but Morgan Stanley maintained an equal-weight view and questioned whether client growth will accelerate enough to support the ambitious long-term targets.
• Negative Sentiment: Jefferies called Zscaler’s $10 billion fiscal 2031 ARR goal ambitious, while commentary on the stock’s 45% three-month rally cited slowing growth and rising costs as reasons investors may consider taking profits. BTIG retained a neutral rating, and Pomerantz LLP announced an investigation into potential investor claims, adding a legal headline risk. Jefferies on Zscaler’s long-term ARR target

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.