Zscaler's (ZS) Buy Rating Reiterated at Guggenheim

Key Points

• Guggenheim reiterated a Buy rating on Zscaler and kept a $214 price target, implying about 67% upside from the current share price.
• Other analysts remain broadly positive, with the stock carrying a consensus Moderate Buy rating and an average price target of $216.03, though some firms have recently trimmed their targets.
• Zscaler’s latest earnings beat estimates, with EPS of $1.08 and revenue of $850.48 million, while revenue rose 25.4% year over year and the company issued guidance for fiscal 2026.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "buy" rating reissued by Guggenheim in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $214.00 price target on the stock. Guggenheim's price objective would suggest a potential upside of 67.06% from the company's current price.

Other equities analysts have also recently issued reports about the stock. Royal Bank Of Canada reduced their price objective on shares of Zscaler from $205.00 to $200.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 27th. Morgan Stanley dropped their price objective on Zscaler from $155.00 to $145.00 and set an "equal weight" rating for the company in a report on Wednesday, May 27th. Canaccord Genuity Group decreased their target price on Zscaler from $275.00 to $210.00 and set a "buy" rating for the company in a research report on Wednesday, May 27th. Berenberg Bank set a $200.00 price objective on shares of Zscaler in a report on Thursday, May 28th. Finally, Zacks Research upgraded shares of Zscaler from a "strong sell" rating to a "hold" rating in a report on Wednesday, May 27th. Thirty-three equities research 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. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $216.03.

Zscaler Trading Up 1.8%

Shares of NASDAQ:ZS opened at $128.10 on Wednesday. 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 stock has a market capitalization of $20.72 billion, a PE ratio of -265.08, a P/E/G ratio of 80.81 and a beta of 0.97. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The firm has a fifty day moving average price of $143.22 and a 200 day moving average price of $180.32.

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

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 1,682 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer owned 46,479 shares of the company's stock, valued at $7,278,146.61. The trade was a 3.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider directly owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,130 shares of company stock valued at $1,892,487 in the last quarter. Insiders own 17.20% of the company's stock.

Hedge Funds Weigh In On Zscaler

Hedge funds have recently modified their holdings of the company. Westpac Banking Corp boosted its position in Zscaler by 919.0% during the third quarter. Westpac Banking Corp now owns 9,986 shares of the company's stock worth $2,992,000 after purchasing an additional 9,006 shares during the period. Korea Investment CORP lifted its stake in shares of Zscaler by 24.0% during the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company's stock valued at $29,478,000 after buying an additional 19,026 shares in the last quarter. Qsemble Capital Management LP boosted its holdings in Zscaler by 105.5% in the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company's stock worth $3,548,000 after buying an additional 8,099 shares during the period. Oxbow Advisors LLC purchased a new position in Zscaler in the 4th quarter valued at approximately $2,939,000. Finally, Vinva Investment Management Ltd raised its holdings in Zscaler by 136.1% during the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company's stock valued at $3,400,000 after acquiring an additional 6,541 shares during the period. Institutional investors own 46.45% of the company's stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and set a $200 price target on Zscaler, implying meaningful upside from current levels. Rosenblatt reaffirms Buy on Zscaler
• Positive Sentiment: Needham also reiterated a Buy rating with a $180 price target, reinforcing Wall Street confidence in Zscaler’s growth outlook. Needham reaffirms Buy on Zscaler
• Positive Sentiment: Zscaler unveiled major AI-security and zero-trust product expansions, including ZAgent Framework, AI Broker, Endpoint AI Security, and AI Access Graph, which positions the company as an early leader in securing agentic AI workloads. Zscaler Redefines Zero Trust SASE for the AI Era
• Positive Sentiment: The company expanded Project AI-Guardian with partners like AWS, Google Cloud, OpenAI, Databricks, and others, suggesting broader ecosystem adoption and more AI-related use cases for its platform. Zscaler Expands AI-Guardian Uniting Tech Giants to Secure Enterprise AI at Scale
• Neutral Sentiment: Management highlighted research showing cybercriminals are using AI to create more targeted phishing attacks, which supports the demand case for Zscaler’s security tools but does not directly change near-term financials. Zscaler Research Finds Cybercrime Economics Are Shifting as AI Trades Mass Volume for Lethal Precision
• Negative Sentiment: Investor concern remains elevated after reports of a stock crash and securities investigation/class-action activity, which can pressure sentiment even when fundamentals and product news are improving. Zscaler's Stock Lost 31% in One Day. Now Securities Lawyers Are Circling.
• Negative Sentiment: Additional law-firm notices about a possible fraud/securities investigation add legal uncertainty and can weigh on the stock until clarified. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm

About Zscaler

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.

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