Zscaler (NASDAQ:ZS) Price Target Raised to $275.00

Key Points

• Cantor Fitzgerald raised Zscaler’s price target to $275 from $225 and maintained an “overweight” rating, implying approximately 29.6% upside from the reported share price.
• Zscaler reported quarterly revenue of $898.2 million, up 24.9% year over year, and adjusted EPS of $1.19, exceeding analyst expectations. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $224.90.
• Shares opened at $212.25 after rising 5.2%, while insiders sold approximately $5.6 million of stock during the quarter; institutional investors own 46.45% of the company.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price raised by analysts at Cantor Fitzgerald from $225.00 to $275.00 in a report released on Wednesday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Cantor Fitzgerald's target price would suggest a potential upside of 29.56% from the company's current price.

ZS has been the topic of a number of other research reports. JPMorgan Chase & Co. lifted their price target on Zscaler from $205.00 to $215.00 and gave the company an "overweight" rating in a report on Wednesday, August 26th. KeyCorp increased their price objective on Zscaler from $185.00 to $210.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. BMO Capital Markets upped their target price on Zscaler from $178.00 to $200.00 and gave the company an "outperform" rating in a report on Friday, September 4th. Wells Fargo & Company increased their price target on shares of Zscaler from $210.00 to $215.00 and gave the stock an "overweight" rating in a research report on Friday, September 4th. Finally, Barclays boosted their price objective on shares of Zscaler from $200.00 to $220.00 and gave the company an "overweight" rating in a research report on Tuesday, September 29th. Thirty-four 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. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $224.90.

Zscaler Stock Up 5.2%

ZS stock opened at $212.25 on Wednesday. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The company's 50 day simple moving average is $181.94 and its 200-day simple moving average is $155.82. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The firm has a market capitalization of $34.61 billion, a P/E ratio of -544.23, a P/E/G ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS - Get Free Report) last issued 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. 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 the consensus estimate of $876.96 million. During the same quarter in the prior year, the firm earned $0.89 EPS. The firm's quarterly 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. As a group, equities research analysts anticipate that Zscaler will post 0.7 EPS for the current year.

Insider Buying and Selling at Zscaler

In related news, insider Robert Schlossman sold 5,394 shares of the business'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 transaction, the insider owned 61,525 shares of the company's stock, valued at approximately $12,305,000. The trade was a 8.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 177 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total transaction 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 represents a 4.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 29,053 shares of company stock worth $5,610,165 in the last quarter. 17.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several large investors have recently added to or reduced their stakes in the company. Parkside Financial Bank & Trust boosted its stake in Zscaler by 18.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 417 shares of the company's stock valued at $59,000 after purchasing an additional 66 shares during the period. Versant Capital Management Inc increased its position in Zscaler by 45.6% during the 3rd quarter. Versant Capital Management Inc now owns 230 shares of the company's stock worth $46,000 after buying an additional 72 shares during the period. Koshinski Asset Management Inc. lifted its holdings in shares of Zscaler by 2.7% during the first quarter. Koshinski Asset Management Inc. now owns 3,036 shares of the company's stock worth $426,000 after buying an additional 79 shares in the last quarter. J.W. Cole Advisors Inc. lifted its holdings in shares of Zscaler by 2.0% during the fourth quarter. J.W. Cole Advisors Inc. now owns 4,106 shares of the company's stock worth $908,000 after buying an additional 80 shares in the last quarter. Finally, CX Institutional lifted its holdings in shares of Zscaler by 15.9% during the third quarter. CX Institutional now owns 611 shares of the company's stock worth $122,000 after buying an additional 84 shares in the last quarter. 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: Fiscal 2027 guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, removing a key uncertainty for investors. Management’s guidance includes FY27 EPS of approximately $4.86–$4.90 and Q1 EPS of $1.15–$1.16. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: AI is strengthening demand: Management said enterprises need stronger zero-trust defenses as AI agents create new attack surfaces and cyber risks. Investors viewed this as a potentially significant growth tailwind for Zscaler’s cloud security platform. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Analyst target raised: Stifel increased its price target, citing Zscaler’s prospects in AI cybersecurity. The target revision adds to bullish sentiment surrounding the company’s growth outlook. Zscaler: Stifel hikes target on AI cybersecurity prospects
• Positive Sentiment: IBM and Red Hat collaboration: Zscaler is working with IBM and Red Hat on protection for private applications during the period between vulnerability disclosure and patch deployment, expanding its enterprise security ecosystem. Zscaler Collaborates with IBM and Red Hat
• Neutral Sentiment: One analyst retained a Buy rating but lowered conviction from an earlier stronger stance. The analyst cited roughly 25% revenue growth, improving profitability, a net-cash balance sheet and a long-term $10 billion ARR target, while highlighting valuation and execution expectations. Zscaler Analyst Rating
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were provided, but the announcement creates a modest headline and litigation overhang. Pomerantz Investor Alert

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.

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