Evercore ISI Boosts Zscaler (NASDAQ:ZS) Price Target to $320.00

Key Points

• Evercore ISI raised Zscaler's price target from $290.00 to $320.00, indicating a potential upside of 22.26% from its current price.
• Despite a recent drop in share price, Zscaler reported strong earnings, with $0.89 earnings per share, beating estimates, and a 21.3% year-over-year revenue increase.
• Analyst consensus rating for Zscaler stock is currently "Moderate Buy", with the average price target set at $303.60.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective lifted by research analysts at Evercore ISI from $290.00 to $320.00 in a research report issued to clients and investors on Wednesday, MarketBeat reports. The brokerage currently has an "outperform" rating on the stock. Evercore ISI's price target points to a potential upside of 16.70% from the stock's current price.

A number of other brokerages have also issued reports on ZS. Wedbush boosted their target price on Zscaler from $240.00 to $300.00 and gave the stock an "outperform" rating in a research report on Friday, May 30th. Royal Bank Of Canada boosted their target price on Zscaler from $288.00 to $304.00 and gave the company an "outperform" rating in a research note on Friday, May 30th. BTIG Research reissued a "buy" rating on shares of Zscaler in a research report on Thursday, July 10th. B. Riley started coverage on Zscaler in a report on Tuesday, August 26th. They issued a "neutral" rating and a $275.00 price target for the company. Finally, Wells Fargo & Company upgraded Zscaler from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $260.00 to $385.00 in a research note on Friday, June 13th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and an average target price of $307.00.

Zscaler Stock Up 2.2%

ZS stock traded up $5.95 during trading on Wednesday, reaching $274.20. 1,620,011 shares of the company's stock were exchanged, compared to its average volume of 1,603,908. Zscaler has a 1-year low of $153.45 and a 1-year high of $318.46. The company's fifty day moving average price is $285.29 and its 200-day moving average price is $251.14. The firm has a market cap of $42.69 billion, a PE ratio of -1,015.56, a P/E/G ratio of 226.46 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative return on equity of 0.49% and a negative net margin of 1.55%.The company had revenue of $719.23 million during the quarter, compared to analyst estimates of $707.15 million. During the same quarter in the previous year, the firm posted $0.88 EPS. The firm's quarterly revenue was up 21.3% on a year-over-year basis. 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, sell-side analysts expect that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Syam Nair sold 4,064 shares of the firm's stock in a transaction that occurred 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 in the company, valued at $32,392,338.30. This trade represents a 3.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, major shareholder Ajay Mangal sold 120,000 shares of the firm's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $300.89, for a total transaction of $36,106,800.00. Following the sale, the insider owned 2,550,210 shares of the company's stock, valued at $767,332,686.90. This trade represents a 4.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 143,305 shares of company stock valued at $43,199,936 in the last three months. Corporate insiders own 18.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ZS. Quaker Wealth Management LLC increased its holdings in shares of Zscaler by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 97 shares of the company's stock worth $30,000 after buying an additional 194 shares in the last quarter. Exane Asset Management grew its stake in shares of Zscaler by 185.7% in the second quarter. Exane Asset Management now owns 100 shares of the company's stock worth $31,000 after purchasing an additional 65 shares during the last quarter. Kozak & Associates Inc. bought a new stake in shares of Zscaler in the second quarter worth $35,000. ORG Partners LLC grew its holdings in Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock worth $26,000 after acquiring an additional 94 shares during the period. Finally, SVB Wealth LLC acquired a new stake in Zscaler during the 1st quarter worth about $26,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.