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

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

Several other brokerages have also recently commented on ZS. Piper Sandler increased their target price on shares of Zscaler from $160.00 to $175.00 and gave the stock a “neutral” rating in a report on Friday, September 4th. JPMorgan Chase & Co. lifted their price target on shares of Zscaler from $215.00 to $245.00 and gave the company an “overweight” rating in a research note on Wednesday, October 7th. Jefferies Financial Group boosted their price target on shares of Zscaler from $220.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, October 7th. Barclays increased their price objective on shares of Zscaler from $220.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 7th. Finally, Scotiabank raised their price objective on Zscaler from $240.00 to $255.00 and gave the company a “sector outperform” rating in a report on Wednesday, October 7th. Thirty-seven equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $240.14.

Zscaler Stock Up 2.8%

Shares of NASDAQ:ZS traded up $6.43 during mid-day trading on Thursday, reaching $237.76. 3,691,641 shares of the stock were exchanged, compared to its average volume of 3,334,401. 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 company has a market cap 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 one year low of $114.63 and a one year high of $336.99. The stock’s 50 day simple moving average is $194.52 and its 200-day simple moving average is $161.88.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%. The business’s quarterly revenue was up 24.9% compared to the same quarter last year. During the same quarter in the previous 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. As a group, equities research analysts predict that Zscaler will post 0.69 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the sale, the director directly 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 legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the firm’s stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $197.28, for a total transaction of $102,388.32. Following the sale, the chief financial officer owned 42,768 shares of the company’s stock, valued at $8,437,271.04. This trade represents a 1.20% decrease in their ownership of the stock. 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. Over the last 90 days, insiders sold 54,053 shares of company stock worth $11,256,876. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in Zscaler during the 2nd quarter worth approximately $1,396,028,000. First Trust Advisors LP increased its position in Zscaler by 36.2% during the 1st 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 during the period. Pictet Asset Management Holding SA lifted its holdings in shares of Zscaler by 52.5% during the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after buying an additional 661,413 shares in the last quarter. Amundi lifted its holdings in shares of Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after buying an additional 129,563 shares in the last quarter. Finally, Wellington Management Group LLP boosted 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 during the period. Institutional investors and hedge funds own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

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.