Zscaler’s (ZS) Outperform Rating Reiterated at BNP Paribas Exane

BNP Paribas Exane reaffirmed their outperform rating on shares of Zscaler (NASDAQ:ZS) in a research report released on Wednesday morning,Benzinga reports. BNP Paribas Exane currently has a $250.00 price objective on the stock, up from their previous price objective of $230.00.

A number of other brokerages also recently issued reports on ZS. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Zscaler in a research report on Friday, September 4th. Morgan Stanley raised their target price on shares of Zscaler from $165.00 to $185.00 and gave the stock an “equal weight” rating in a research report on Wednesday. Roth Capital reaffirmed a “neutral” rating and set a $170.00 target price on shares of Zscaler in a research note on Saturday, September 5th. Stephens boosted their price target on shares of Zscaler from $225.00 to $265.00 and gave the company an “overweight” rating in a research report on Wednesday. Finally, Piper Sandler increased their price target on shares of Zscaler from $160.00 to $175.00 and gave the stock a “neutral” rating in a research note on Friday, September 4th. Thirty-five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $239.41.

Zscaler Price Performance

Shares of ZS stock opened at $233.73 on Wednesday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The firm has a market cap of $38.11 billion, a P/E ratio of -599.31, a P/E/G ratio of 20.84 and a beta of 0.94. The business’s 50 day moving average price is $186.15 and its 200-day moving average price is $157.22.

Zscaler (NASDAQ:ZS) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 EPS 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 during the quarter, compared to the consensus estimate of $876.96 million. During the same quarter in the prior year, the company earned $0.89 earnings per share. The firm’s revenue for the quarter 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. On average, equities research analysts anticipate that Zscaler will post 0.69 earnings per share for the current year.

Insider Transactions at Zscaler

In other news, 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 sale, the insider owned 43,553 shares in the company, valued at approximately $8,395,276.28. The trade was a 11.35% decrease in their position. The sale 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 5,394 shares of the company’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $200.00, for a total transaction of $1,078,800.00. Following the completion of the sale, the insider directly owned 61,525 shares in the company, valued at $12,305,000. This represents a 8.06% 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. Over 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 Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Zscaler during the second quarter valued at approximately $1,396,028,000. First Trust Advisors LP grew its stake in shares of Zscaler by 36.2% in 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 last quarter. Pictet Asset Management Holding SA grew its stake in shares of Zscaler by 52.5% in the 1st 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 during the last quarter. Amundi increased its position in Zscaler by 12.8% during the 2nd 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 in the last quarter. Finally, Wellington Management Group LLP increased its position in Zscaler by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock valued at $155,718,000 after buying 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.