Royal Bank Of Canada Forecasts Strong Price Appreciation for Zscaler (NASDAQ:ZS) Stock

Key Points

• Royal Bank of Canada raised its price target for Zscaler (NASDAQ:ZS) from $335.00 to $350.00, indicating a potential upside of 15.12% from the current price.
• Zscaler reported a revenue of $719.23 million for the last quarter, surpassing analyst expectations and marking a 21.3% increase from the previous year.
• Analysts have mixed ratings on Zscaler, with one Strong Buy, 29 Buy, seven Hold, and one Sell, while the average rating is a "Moderate Buy" with a target of $307.43.

Zscaler (NASDAQ:ZS - Get Free Report) had its price target increased by Royal Bank Of Canada from $335.00 to $350.00 in a research note issued on Thursday, MarketBeat Ratings reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 15.12% from the stock's current price.

A number of other research analysts also recently weighed in on the company. Scotiabank decreased their price target on Zscaler from $360.00 to $334.00 and set a "sector outperform" rating for the company in a research note on Wednesday, September 3rd. BMO Capital Markets increased their price objective on shares of Zscaler from $295.00 to $315.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. Robert W. Baird increased their price target on shares of Zscaler from $330.00 to $345.00 and gave the company an "outperform" rating in a report on Wednesday, September 3rd. B. Riley began coverage on Zscaler in a research note on Tuesday, August 26th. They set a "neutral" rating and a $275.00 target price on the stock. Finally, Wedbush restated an "outperform" rating and issued a $330.00 price target on shares of Zscaler in a research note on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and an average price target of $307.43.

Zscaler Stock Performance

Shares of ZS opened at $304.03 on Thursday. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95. Zscaler has a 12 month low of $164.78 and a 12 month high of $318.46. The company's fifty day moving average is $281.33 and its 200-day moving average is $262.12. The firm has a market cap of $48.13 billion, a price-to-earnings ratio of -1,130.17 and a beta of 1.06.

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, topping the consensus estimate of $0.80 by $0.09. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. During the same quarter last year, the firm earned $0.88 EPS. Zscaler'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. Equities analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Activity

In other news, insider Robert Schlossman sold 3,832 shares of the firm's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total transaction of $1,075,642.40. Following the sale, the insider owned 83,138 shares of the company's stock, valued at $23,336,836.60. This trade represents a 4.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Adam Geller sold 11,193 shares of the business's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total transaction of $3,141,875.10. Following the completion of the sale, the insider owned 53,942 shares in the company, valued at $15,141,519.40. This represents a 17.18% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 32,878 shares of company stock worth $9,266,002. Corporate insiders own 18.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ZS. Quaker Wealth Management LLC grew its stake in Zscaler by 200.0% during the 2nd quarter. Quaker Wealth Management LLC now owns 97 shares of the company's stock worth $30,000 after buying an additional 194 shares during the last quarter. Exane Asset Management raised its position in Zscaler by 185.7% during the second quarter. Exane Asset Management now owns 100 shares of the company's stock worth $31,000 after acquiring an additional 65 shares during the last quarter. Kozak & Associates Inc. purchased a new stake in Zscaler during the 2nd quarter worth about $35,000. ORG Partners LLC increased its position in Zscaler by 284.8% during the first quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after purchasing an additional 94 shares during the last quarter. Finally, SVB Wealth LLC acquired a new stake in Zscaler during the 1st quarter worth approximately $26,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Company Profile

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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