Zscaler (NASDAQ:ZS) Stock Gets Price Target Increase from Robert W. Baird

Key Points

• Robert W. Baird raised Zscaler’s price target from $230 to $285 and maintained an “outperform” rating, implying 34.28% upside from the prior close.
• Analyst sentiment remains broadly positive: 34 analysts rate the stock a Buy, seven rate it Hold and one rates it Sell, producing a “Moderate Buy” consensus and an average target of $224.90.
• Zscaler recently beat quarterly expectations, reporting $1.19 in EPS versus the $1.09 consensus and $898.19 million in revenue, up 24.9% year over year; the stock opened at $212.25 and was trading up 5.2%.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective hoisted by stock analysts at Robert W. Baird from $230.00 to $285.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Robert W. Baird's price target would suggest a potential upside of 34.28% from the stock's previous close.

Other equities research analysts have also recently issued reports about the stock. Royal Bank Of Canada boosted their price target on shares of Zscaler from $210.00 to $236.00 and gave the stock an "outperform" rating in a research report on Friday, September 25th. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $210.00 target price on shares of Zscaler in a research report on Friday, September 4th. Stephens set a $215.00 target price on Zscaler in a report on Friday, September 4th. BTIG Research reissued a "neutral" rating on shares of Zscaler in a research report on Friday, September 4th. Finally, Sanford C. Bernstein increased their price target on Zscaler from $224.00 to $298.00 and gave the company an "outperform" rating in a research report on Thursday, September 17th. Thirty-four 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. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $224.90.

Zscaler Trading Up 5.2%

NASDAQ:ZS opened at $212.25 on Wednesday. The company has a market cap of $34.61 billion, a P/E ratio of -544.23, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The business has a 50 day moving average price of $181.94 and a two-hundred day moving average price of $155.82. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same period last year, the company earned $0.89 earnings per share. The firm's revenue was up 24.9% compared to the same quarter last year. 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, analysts expect that Zscaler will post 0.7 EPS for the current fiscal year.

Insider Activity at Zscaler

In other news, CFO Kevin Rubin sold 5,957 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the transaction, the chief financial officer directly owned 43,287 shares of the company's stock, valued at $8,344,002.12. This represents a 12.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 firm'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 sale, the insider owned 61,525 shares of the company's stock, valued at approximately $12,305,000. This represents a 8.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,053 shares of company stock valued at $5,610,165 in the last ninety days. Company insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently made changes to their positions in ZS. 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% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock valued at $493,635,000 after acquiring an additional 935,781 shares during the period. Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Zscaler during the second quarter valued at $102,271,000. 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 purchasing an additional 661,413 shares during the period. Finally, Legal & General Group Plc acquired a new position in shares of Zscaler during the second quarter worth $89,740,000. Institutional investors own 46.45% of the company's stock.

More Zscaler News

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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