Zscaler's (ZS) Buy Rating Reaffirmed at Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its buy rating on Zscaler and kept a $200 price target, implying about 59% upside from the prior close.
• Other analysts remain broadly positive on ZS, with the stock carrying a Moderate Buy consensus and a $216.03 average price target, even as some firms trimmed or raised their targets recently.
• Zscaler’s latest results beat expectations, with Q4 revenue up 25.4% year over year and EPS of $1.08 versus the $1.01 estimate. The company also highlighted new AI-security products and partnerships that could support future growth.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Rosenblatt Securities in a note issued to investors on Wednesday,Benzinga reports. They presently have a $200.00 price target on the stock. Rosenblatt Securities' price target indicates a potential upside of 58.93% from the company's previous close.

Several other equities research analysts also recently commented on the stock. Deutsche Bank Aktiengesellschaft cut their target price on shares of Zscaler from $185.00 to $175.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. KeyCorp raised their target price on Zscaler from $160.00 to $190.00 and gave the stock an "overweight" rating in a research note on Monday, May 18th. Citizens Jmp decreased their price target on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a research note on Friday, May 1st. Guggenheim upgraded Zscaler from a "neutral" rating to a "buy" rating and set a $214.00 price objective for the company in a report on Monday, June 1st. Finally, Stifel Nicolaus lowered their target price on shares of Zscaler from $180.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, May 27th. Thirty-three analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $216.03.

Zscaler Stock Down 2.6%

Shares of ZS opened at $125.84 on Wednesday. The stock has a market capitalization of $20.35 billion, a PE ratio of -262.16, a P/E/G ratio of 80.81 and a beta of 0.97. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm's 50 day moving average is $143.22 and its 200-day moving average is $180.32. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same quarter in the prior year, the firm posted $0.84 EPS. The firm's quarterly revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Equities research analysts forecast that Zscaler will post 0.11 EPS for the current year.

Insider Buying and Selling

In other news, insider Adam Geller sold 2,094 shares of the business's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the transaction, the insider directly owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Robert Schlossman sold 2,263 shares of the business's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the transaction, the insider directly owned 72,390 shares of the company's stock, valued at $11,335,550.10. The trade was a 3.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 12,130 shares of company stock valued at $1,892,487 in the last three months. Insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after acquiring an additional 55,521 shares in the last quarter. Groupama Asset Managment boosted its holdings in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock valued at $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. First Trust Advisors LP boosted its holdings in Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock worth $578,576,000 after acquiring an additional 777,414 shares during the period. Finally, State Street Corp grew its stake in shares of Zscaler by 3.4% during the 4th quarter. State Street Corp now owns 2,337,604 shares of the company's stock valued at $525,774,000 after purchasing an additional 77,800 shares during the period. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler unveiled new AI-security products, including AI Broker and Endpoint AI Security, to protect AI agents, endpoints, and enterprise data as more workflows shift to agentic AI. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Positive Sentiment: The company expanded Project AI-Guardian with partners including AWS, Google Cloud, OpenAI, Databricks, CoreWeave, Equinix, Glean, NTT DATA, and Saviynt, which could strengthen Zscaler’s position as an AI security platform and improve adoption. Zscaler Expands AI-Guardian, Uniting Tech Giants to Secure Enterprise AI at Scale
• Positive Sentiment: Zscaler’s CEO argued that AI will create “billions of agents” that need cybersecurity protection, reinforcing the bull case that ZS can benefit from the rise of autonomous AI workflows. Zscaler CEO: AI Will Create ‘Billions of Agents’ That Need Cybersecurity Protection
• Neutral Sentiment: Zscaler’s new products and partnership announcements highlight strong strategic momentum, but the releases also include forward-looking caveats about customer adoption and execution risk. Zscaler Unveils New Product Innovations to Secure Agentic AI
• Negative Sentiment: Broader market reaction to Anthropic’s new models pressured cybersecurity and software names, including Zscaler, on concern that the competitive AI landscape could shift investor sentiment away from the group. Zscaler, Dynatrace, and Nutanix Shares Are Falling, What You Need To Know
• Negative Sentiment: New class-action deadline reminders and a separate fraud investigation notice add legal overhang for ZS shares. ZS DEADLINE: The Gross Law Firm Reminds Zscaler, Inc. Investors of Upcoming Securities Class Action Deadline

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.