Zscaler (NASDAQ:ZS) Price Target Raised to $185.00

Zscaler (NASDAQ:ZS) had its target price raised by Morgan Stanley from $165.00 to $185.00 in a report issued on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has an equal weight rating on the stock.

Other analysts also recently issued research reports about the company. Citigroup raised their price objective on Zscaler from $205.00 to $245.00 and gave the stock a “buy” rating in a research report on Wednesday. Scotiabank upped their target price on Zscaler from $200.00 to $240.00 and gave the company an “outperform” rating in a research note on Monday. JPMorgan Chase & Co. upped their target price on Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 26th. Sanford C. Bernstein raised their target price on Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research report on Thursday, September 17th. Finally, Needham & Company LLC lifted their price target on shares of Zscaler from $180.00 to $215.00 and gave the stock a “buy” rating in a research note on Friday, September 4th. Thirty-five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Stock Performance

NASDAQ:ZS opened at $233.73 on Wednesday. The firm’s 50-day moving average is $186.15 and its 200-day moving average is $157.22. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The company has a market cap of $38.11 billion, a price-to-earnings ratio of -599.31, a PEG ratio of 20.84 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business had revenue of $898.19 million during the quarter, compared to analysts’ expectations of $876.96 million. During the same quarter last year, the company earned $0.89 earnings per share. The firm’s revenue 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. Equities research analysts anticipate that Zscaler will post 0.69 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Jagtar Chaudhry sold 2,852 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $549,751.52. Following the completion of the transaction, the chief executive officer owned 340,186 shares in the company, valued at $65,574,253.36. This trade represents a 0.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 value of $1,075,215.28. Following the completion of the sale, the insider directly owned 43,553 shares in the company, valued at approximately $8,395,276.28. This represents a 11.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 29,053 shares of company stock worth $5,610,165 over the last 90 days. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several large investors have recently made changes to their positions in ZS. Riversedge Advisors LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth about $275,000. Wedmont Private Capital bought a new position in Zscaler during the 3rd quarter valued at about $246,000. GAMMA Investing LLC boosted its position in Zscaler by 13.9% in the third quarter. GAMMA Investing LLC now owns 805 shares of the company’s stock valued at $161,000 after buying an additional 98 shares in the last quarter. Farther Finance Advisors LLC boosted its position in Zscaler by 79.8% in the third quarter. Farther Finance Advisors LLC now owns 3,691 shares of the company’s stock valued at $736,000 after buying an additional 1,638 shares in the last quarter. Finally, Valeo Financial Advisors LLC bought a new stake in Zscaler during the third quarter worth about $308,000. Institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

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

Zscaler Company Profile

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.