Zscaler's (ZS) Outperform Rating Reiterated at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its outperform rating on Zscaler and set a $200 price target, implying about 56% upside from the current share price.
• Other analysts remain broadly positive despite some target cuts, with the stock carrying an overall Moderate Buy consensus and an average price target of $216.03.
• Zscaler recently reported better-than-expected quarterly results, posting $1.08 EPS and $850.48 million in revenue, while revenue rose 25.4% year over year.

Zscaler (NASDAQ:ZS - Get Free Report)'s stock had its "outperform" rating reaffirmed by research analysts at Royal Bank Of Canada in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $200.00 price target on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 56.25% from the company's current price.

A number of other brokerages have also recently commented on ZS. Morgan Stanley reduced their price target on shares of Zscaler from $155.00 to $145.00 and set an "equal weight" rating on the stock in a research report on Wednesday, May 27th. Rosenblatt Securities restated a "buy" rating and issued a $200.00 price objective on shares of Zscaler in a report on Wednesday. Citizens Jmp cut their price objective 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. Oppenheimer reduced their target price on shares of Zscaler from $280.00 to $250.00 and set an "outperform" rating on the stock in a report on Tuesday, March 10th. Finally, Wedbush decreased their target price on shares of Zscaler from $300.00 to $220.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th. Thirty-three equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $216.03.

Zscaler Price Performance

ZS stock traded up $2.16 during mid-day trading on Wednesday, hitting $128.00. 666,730 shares of the stock were exchanged, compared to its average volume of 3,569,907. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The business has a fifty day moving average price of $143.22 and a 200 day moving average price of $180.32. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The stock has a market capitalization of $20.70 billion, a price-to-earnings ratio of -266.18, a PEG ratio of 80.81 and a beta of 0.97.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. The firm had revenue of $850.48 million during the quarter, compared to analysts' expectations of $835.14 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company's revenue for the quarter was up 25.4% compared to the same quarter last year. 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. On average, sell-side analysts anticipate that Zscaler will post 0.11 EPS for the current year.

Insider Buying and Selling

In related news, insider Adam Geller sold 2,094 shares of the business's stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director James A. Beer sold 177 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the completion of the sale, the director owned 4,384 shares of the company's stock, valued at approximately $673,075.52. This trade represents a 3.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 12,130 shares of company stock valued at $1,892,487 over the last ninety days. Corporate insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Several large investors have recently added to or reduced their stakes in ZS. Bessemer Group Inc. raised its holdings in Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company's stock worth $306,000 after purchasing an additional 32 shares in the last quarter. Wedbush Securities Inc. boosted its stake in shares of Zscaler by 0.7% during the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company's stock valued at $1,537,000 after purchasing an additional 34 shares in the last quarter. Goldstream Capital Management Ltd increased its position in shares of Zscaler by 0.3% during the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after buying an additional 34 shares during the period. Kentucky Retirement Systems Insurance Trust Fund increased its position in shares of Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after buying an additional 36 shares during the period. Finally, Advisor OS LLC raised its stake in Zscaler by 4.6% in the third quarter. Advisor OS LLC now owns 879 shares of the company's stock worth $263,000 after buying an additional 39 shares in the last quarter. Institutional investors own 46.45% of the company's stock.

Zscaler News Roundup

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

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.

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