JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Zscaler (NASDAQ:ZS) Stock

Key Points

• JPMorgan Chase & Co. raised its price target for Zscaler from $348.00 to $351.00, suggesting a potential upside of 29.53% from the stock's previous close.
• Several other investment firms have also increased their price targets for Zscaler, with average ratings showing twenty-nine Buy ratings, indicating strong market confidence in the stock.
• Zscaler reported $0.89 earnings per share for the last quarter, exceeding analysts' estimates, and its revenue increased by 21.3% year-over-year.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective boosted by investment analysts at JPMorgan Chase & Co. from $348.00 to $351.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 29.53% from the stock's previous close.

Other equities research analysts also recently issued reports about the stock. Evercore ISI lifted their price target on shares of Zscaler from $290.00 to $320.00 and gave the company an "outperform" rating in a research report on Wednesday. Barclays lifted their price target on shares of Zscaler from $300.00 to $320.00 and gave the company an "overweight" rating in a research report on Wednesday. Morgan Stanley upgraded shares of Zscaler from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $280.00 to $320.00 in a research report on Tuesday. Piper Sandler lifted their price target on shares of Zscaler from $260.00 to $280.00 and gave the company a "neutral" rating in a research report on Wednesday. Finally, Wedbush reiterated an "outperform" rating and set a $330.00 price target on shares of Zscaler in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $306.00.

Zscaler Trading Down 1.3%

Shares of NASDAQ ZS traded down $3.59 during midday trading on Wednesday, reaching $270.98. 3,138,993 shares of the company were exchanged, compared to its average volume of 2,145,527. Zscaler has a 1 year low of $153.45 and a 1 year high of $318.46. The stock has a fifty day simple moving average of $287.86 and a 200 day simple moving average of $249.96. The stock has a market cap of $42.19 billion, a P/E ratio of -1,042.59, a PEG ratio of 259.58 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.59% and a negative net margin of 1.52%.The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. During the same quarter in the previous year, the company earned $0.88 EPS. The firm's revenue for the quarter was up 21.3% compared to the same quarter last year. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. As a group, analysts forecast that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In related news, insider Syam Nair sold 4,064 shares of the company's stock in a transaction on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total transaction of $1,234,236.80. Following the completion of the sale, the insider directly owned 106,659 shares of the company's stock, valued at approximately $32,392,338.30. This represents a 3.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the company's stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $865,241.30. Following the sale, the chief executive officer directly owned 353,565 shares of the company's stock, valued at approximately $107,377,690.50. This trade represents a 0.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 143,305 shares of company stock worth $43,199,936 in the last quarter. Insiders own 18.10% of the company's stock.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in ZS. ORG Partners LLC lifted its holdings in Zscaler by 284.8% in the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after buying an additional 94 shares in the last quarter. SVB Wealth LLC acquired a new stake in shares of Zscaler in the 1st quarter valued at about $26,000. Colonial Trust Co SC acquired a new stake in shares of Zscaler in the 4th quarter valued at about $28,000. Goodman Advisory Group LLC acquired a new stake in shares of Zscaler in the 1st quarter valued at about $29,000. Finally, N.E.W. Advisory Services LLC acquired a new stake in shares of Zscaler in the 1st quarter valued at about $29,000. Institutional investors and hedge funds own 46.45% of the company's stock.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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