Zscaler (NASDAQ:ZS) Stock Price Target Raised at Wedbush

Key Points

• Wedbush raised Zscaler’s price target to $240 from $215 while maintaining an “outperform” rating, implying approximately 13% upside from the stock’s $212.25 opening price.
• Zscaler reported quarterly EPS of $1.19, beating estimates of $1.09, while revenue rose 24.9% year over year to $898.19 million and exceeded expectations.
• Analyst sentiment remains broadly positive, with 34 Buy ratings, seven Holds and one Sell; the consensus rating is “Moderate Buy” with an average price target of $225.53.

Zscaler (NASDAQ:ZS - Get Free Report) had its target price increased by equities researchers at Wedbush from $215.00 to $240.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Wedbush's target price would indicate a potential upside of 13.07% from the company's current price.

ZS has been the subject of a number of other research reports. Robert W. Baird lifted their price target on shares of Zscaler from $230.00 to $285.00 and gave the company an "outperform" rating in a report on Wednesday. Jefferies Financial Group reissued a "buy" rating and issued a $220.00 price objective on shares of Zscaler in a research note on Wednesday, September 2nd. Stephens set a $215.00 target price on shares of Zscaler in a research report on Friday, September 4th. Morgan Stanley boosted their target price on shares of Zscaler from $165.00 to $185.00 and gave the stock an "equal weight" rating in a research note on Wednesday. Finally, Cantor Fitzgerald upped their price target on shares of Zscaler from $225.00 to $275.00 and gave the stock an "overweight" rating in a report on Wednesday. Thirty-four 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. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $225.53.

Zscaler Stock Up 5.2%

ZS stock opened at $212.25 on Wednesday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The business's 50 day simple moving average is $181.94 and its 200 day simple moving average is $155.82. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The firm has a market capitalization of $34.61 billion, a PE ratio of -544.23, a PEG ratio of 21.03 and a beta of 0.94.

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

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 519 shares of the business's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $197.28, for a total value of $102,388.32. Following the transaction, the chief financial officer owned 42,768 shares in the company, valued at $8,437,271.04. The trade was a 1.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 5,394 shares of the business's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the transaction, the insider directly owned 61,525 shares in the company, valued at approximately $12,305,000. This represents a 8.06% decrease in their position. 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 have sold a total of 29,053 shares of company stock worth $5,610,165 over the last ninety days. Insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the business. Bangor Savings Bank lifted its stake in Zscaler by 2.0% during the third quarter. Bangor Savings Bank now owns 8,273 shares of the company's stock worth $1,650,000 after purchasing an additional 165 shares during the last quarter. Moody National Bank Trust Division lifted its stake in Zscaler by 57.8% in the third quarter. Moody National Bank Trust Division now owns 3,091 shares of the company's stock worth $616,000 after purchasing an additional 1,132 shares during the last quarter. CX Institutional lifted its stake in Zscaler by 15.9% in the third quarter. CX Institutional now owns 611 shares of the company's stock worth $122,000 after purchasing an additional 84 shares during the last quarter. Versant Capital Management Inc boosted its position in Zscaler by 45.6% during the third quarter. Versant Capital Management Inc now owns 230 shares of the company's stock valued at $46,000 after buying an additional 72 shares during the period. Finally, Burkett Financial Services LLC bought a new position in shares of Zscaler during the third quarter valued at about $27,000. 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: 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

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.

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