Zscaler (NASDAQ:ZS) Price Target Raised to $255.00

Zscaler (NASDAQ:ZS) had its price objective lifted by Needham & Company LLC from $215.00 to $255.00 in a report published on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has a buy rating on the stock.

Other equities research analysts have also issued reports about the stock. KeyCorp raised their price objective on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a report on Friday, August 21st. Morgan Stanley boosted their target price on shares of Zscaler from $165.00 to $185.00 and gave the stock an “equal weight” rating in a research note on Wednesday. TD Cowen reissued a “buy” rating and issued a $200.00 target price on shares of Zscaler in a report on Friday, September 4th. Guggenheim restated a “buy” rating on shares of Zscaler in a research note on Friday, September 25th. Finally, JPMorgan Chase & Co. raised their price target on Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 26th. Thirty-five analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $239.41.

Zscaler Price Performance

Shares of ZS opened at $233.73 on Wednesday. The company has a market cap of $38.11 billion, a P/E ratio of -599.31, a PEG ratio of 20.84 and a beta of 0.94. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. 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 firm’s 50 day moving average price is $186.15 and its 200 day moving average price is $157.22.

Zscaler (NASDAQ:ZS) last released its 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 firm 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 was up 24.9% compared to the same quarter last year. During the same period last year, the business posted $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, research analysts forecast that Zscaler will post 0.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director James Beer sold 177 shares of the firm’s 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 $773,800.30. This trade represents a 4.21% decrease in their ownership of the stock. 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. Also, CEO Jagtar Chaudhry sold 2,852 shares of Zscaler stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $549,751.52. Following the completion of the sale, the chief executive officer owned 340,186 shares in the company, valued at approximately $65,574,253.36. This trade represents a 0.83% decrease in their ownership of the stock. 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 three months, insiders have sold 29,053 shares of company stock worth $5,610,165. 17.20% of the stock is currently owned by insiders.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in Zscaler during the 2nd quarter valued at $1,396,028,000. First Trust Advisors LP increased its position in Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after buying an additional 935,781 shares in the last quarter. Pictet Asset Management Holding SA raised its holdings in shares of Zscaler by 52.5% in 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 during the last quarter. Amundi raised its holdings in shares of Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after acquiring an additional 129,563 shares during the last quarter. Finally, Wellington Management Group LLP lifted its position in shares of Zscaler by 23.5% in the second quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock valued at $155,718,000 after acquiring an additional 209,711 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Summary

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

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.