Zscaler (NASDAQ:ZS) Given New $200.00 Price Target at Rosenblatt Securities

Key Points

• Rosenblatt Securities cut its price target on Zscaler from $223 to $200, but kept a buy rating, implying about 8.3% upside from the prior close.
• Zscaler’s latest quarter topped expectations, with EPS of $1.08 and revenue of $850.5 million, both ahead of estimates and revenue up 25.4% year over year.
• Despite strong results, analysts and investors are cautious due to weaker forward guidance and intensifying cybersecurity competition, which have pressured sentiment around the stock.

Zscaler (NASDAQ:ZS - Get Free Report) had its price target decreased by Rosenblatt Securities from $223.00 to $200.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Rosenblatt Securities' price objective indicates a potential upside of 8.34% from the stock's previous close.

Several other brokerages have also weighed in on ZS. B. Riley Financial raised Zscaler from a "neutral" rating to a "buy" rating and dropped their target price for the stock from $275.00 to $225.00 in a research report on Monday, May 18th. JPMorgan Chase & Co. dropped their target price on Zscaler from $354.00 to $267.00 and set an "overweight" rating on the stock in a research report on Friday, February 20th. BMO Capital Markets dropped their target price on Zscaler from $210.00 to $178.00 and set an "outperform" rating on the stock in a research report on Wednesday. Citizens Jmp dropped their target price on Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. Finally, Mizuho set a $185.00 target price on Zscaler in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $245.14.

Zscaler Stock Up 1.2%

Shares of Zscaler stock opened at $184.60 on Wednesday. The stock has a 50-day moving average price of $145.75 and a 200 day moving average price of $192.65. The company has a market cap of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. The firm had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.60 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business's revenue for the quarter was up 25.4% on a year-over-year basis. During the same period in the prior year, the business earned $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, analysts expect that Zscaler will post -0.03 EPS for the current fiscal year.

Insider Activity

In related news, EVP Raj Judge sold 2,488 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares in the company, valued at $10,633,400.54. This represents a 3.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director James A. Beer sold 177 shares of the stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $27,174.81. Following the sale, the director owned 4,384 shares of the company's stock, valued at approximately $673,075.52. The trade was a 3.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 12,130 shares of company stock worth $1,892,487 over the last 90 days. Company insiders own 17.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Binnacle Investments Inc bought a new position in shares of Zscaler in the 3rd quarter worth $25,000. Root Financial Partners LLC bought a new stake in Zscaler during the third quarter worth about $26,000. Picton Mahoney Asset Management bought a new stake in Zscaler during the third quarter worth about $30,000. AlphaCentric Advisors LLC bought a new stake in Zscaler during the fourth quarter worth about $29,000. Finally, University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the fourth quarter worth about $30,000. 46.45% of the stock is currently owned by institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

Zscaler Company Profile

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.