Zscaler’s (ZS) “Outperform” Rating Reaffirmed at Royal Bank Of Canada

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reaffirmed by analysts at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $236.00 price target on the stock. Royal Bank Of Canada’s price target would suggest a potential upside of 10.84% from the stock’s previous close.

ZS has been the subject of a number of other research reports. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a report on Friday, October 2nd. Piper Sandler boosted their target price on Zscaler from $160.00 to $175.00 and gave the stock a “neutral” rating in a research report on Friday, September 4th. KeyCorp upped their price target on Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a research note on Friday, August 21st. TD Cowen increased their price target on shares of Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 26th. Thirty-four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $233.28.

Zscaler Trading Up 0.3%

ZS stock traded up $0.67 during midday trading on Wednesday, reaching $212.92. The company’s stock had a trading volume of 482,445 shares, compared to its average volume of 3,355,947. The business’s 50-day simple moving average is $181.94 and its 200-day simple moving average is $155.82. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The stock has a market cap of $34.72 billion, a PE ratio of -545.02, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last posted 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. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The company had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same quarter in the prior year, the business posted $0.89 EPS. The firm’s quarterly revenue was up 24.9% on a year-over-year basis. 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, sell-side analysts expect that Zscaler will post 0.7 EPS for the current year.

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 5,957 shares of the firm’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $1,148,271.32. Following the sale, the chief financial officer directly owned 43,287 shares in the company, valued at $8,344,002.12. This trade represents a 12.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 5,578 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the completion of the sale, the insider directly owned 43,553 shares in the company, valued at $8,395,276.28. This represents a 11.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. In the last three months, insiders sold 29,053 shares of company stock worth $5,610,165. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several hedge funds and other institutional investors have recently modified their holdings of ZS. Burkett Financial Services LLC bought a new stake in shares of Zscaler in the third quarter valued at about $27,000. University of Texas Texas AM Investment Management Co. acquired a new stake in Zscaler in the 4th quarter valued at approximately $30,000. POM Investment Strategies LLC lifted its stake in Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after acquiring an additional 105 shares in the last quarter. Western Wealth Management LLC bought a new stake in Zscaler in the 1st quarter valued at approximately $33,000. Finally, Reflection Asset Management acquired a new position in Zscaler during the 4th quarter worth approximately $40,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Summary

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 outlook, reducing near-term execution concerns. Management highlighted demand for zero-trust security as enterprises adopt AI and AI agents. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: Multiple bullish target increases: Robert W. Baird raised its target to $285 and maintained an outperform rating; Cantor Fitzgerald raised its target to $275 and assigned overweight; Needham lifted its target to $255 and assigned buy; and Wedbush raised its target to $240 with an outperform rating. These revisions indicate improving Wall Street expectations following the event.
• Positive Sentiment: AI cybersecurity opportunity: Analysts cited Zscaler’s expansion beyond core user security, new customer entry points, stronger cash-flow potential and a broader role in securing AI systems. The company’s long-term strategy reportedly includes an $8 billion-plus annual recurring revenue opportunity and a $10 billion ARR target by fiscal 2031. ZS Stock Draws Multiple Target Hikes After Investor Day
• Positive Sentiment: IBM and Red Hat partnership: Zscaler will combine its Autonomous Application Shield with IBM and Red Hat remediation tools to protect private applications during vulnerability windows, including attacks supported by AI. The deal could strengthen Zscaler’s enterprise distribution and product positioning. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Mixed analyst views: BTIG reaffirmed a neutral rating, while Morgan Stanley raised its target to $185 but retained equal weight—below the current trading level. This suggests valuation remains a concern despite the improved outlook.
• Negative Sentiment: Investor-law-firm investigation: Pomerantz announced an investigation into potential claims on behalf of Zscaler investors. The notice provides no findings, but such announcements can create headline and litigation overhang. Pomerantz Investor Alert

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.