Zscaler (NASDAQ:ZS) Price Target Raised to $265.00

Zscaler (NASDAQ:ZS) had its price objective boosted by Citizens Jmp from $210.00 to $265.00 in a report published on Friday,Benzinga reports. The firm currently has a market outperform rating on the stock.

Several other equities research analysts have also issued reports on ZS. Scotiabank raised their price target on shares of Zscaler from $240.00 to $255.00 and gave the stock a “sector outperform” rating in a research note on Wednesday. Weiss Ratings upgraded Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, September 24th. Guggenheim increased their price objective on Zscaler from $214.00 to $254.00 and gave the company a “buy” rating in a report on Wednesday. Piper Sandler raised 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. Finally, Sanford C. Bernstein boosted their target price on Zscaler from $224.00 to $298.00 and gave the company an “outperform” rating in a research note on Thursday, September 17th. Thirty-five 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 company. Based on data from MarketBeat.com, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $233.73 on Friday. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company’s 50-day moving average price is $186.15 and its two-hundred day moving average price is $157.26. 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 has a market cap of $38.11 billion, a P/E ratio of -599.31, a P/E/G ratio of 22.46 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last released its quarterly 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 business had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler’s revenue was up 24.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $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. As a group, research analysts forecast that Zscaler will post 0.69 EPS for the current fiscal year.

Insider Activity

In other Zscaler news, insider Adam Geller sold 5,578 shares of the stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the transaction, the insider owned 43,553 shares of the company’s stock, valued at $8,395,276.28. This represents a 11.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. 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, CEO Jagtar Chaudhry sold 2,852 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The stock was 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 directly owned 340,186 shares in the company, valued at approximately $65,574,253.36. The trade was a 0.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 29,053 shares of company stock worth $5,610,165. 17.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Zscaler

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Zscaler during the second quarter worth $1,396,028,000. First Trust Advisors LP boosted its position in shares of 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 during the period. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Zscaler in the second quarter valued at $102,271,000. Pictet Asset Management Holding SA grew its stake 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 valued at $269,285,000 after buying an additional 661,413 shares in the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Zscaler in the 2nd quarter valued at $89,740,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

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.