Zscaler’s (ZS) “Buy” Rating Reaffirmed at Rosenblatt Securities

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reaffirmed by equities research analysts at Rosenblatt Securities in a research note issued to investors on Friday, Benzinga reports. They currently have a $200.00 price target on the stock. Rosenblatt Securities’ price target indicates a potential upside of 12.49% from the stock’s previous close.

Several other research firms also recently weighed in on ZS. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 27th. BTIG Research reaffirmed a “neutral” rating on shares of Zscaler in a report on Friday. Mizuho increased their price target on shares of Zscaler from $185.00 to $210.00 and gave the stock an “outperform” rating in a report on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Finally, Evercore set a $155.00 price objective on shares of Zscaler and gave the company an “in-line” rating in a report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $214.90.

Zscaler Stock Up 2.9%

Shares of ZS stock opened at $177.80 on Friday. The stock’s fifty day moving average price is $160.51 and its 200 day moving average price is $150.39. The company has a market cap of $28.75 billion, a price-to-earnings ratio of -370.41, a price-to-earnings-growth ratio of 101.67 and a beta of 0.95. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results 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 business had revenue of $898.18 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. Zscaler’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same quarter in the prior year, the business 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. On average, research analysts expect that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of Zscaler stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the transaction, the chief financial officer directly owned 41,901 shares of the company’s stock, valued at $5,204,942.22. The trade was a 6.68% decrease in their position. 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. Insiders sold 16,772 shares of company stock valued at $2,139,799 in the last quarter. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC increased its stake in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares in the last quarter. NewEdge Advisors LLC boosted its position in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after purchasing an additional 370 shares in the last quarter. Empowered Funds LLC grew its holdings in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new stake in Zscaler in the second quarter valued at approximately $252,000. Finally, Jump Financial LLC purchased a new stake in shares of Zscaler in the second quarter valued at approximately $3,019,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.