Citigroup Cuts Zscaler (NASDAQ:ZS) Price Target to $305.00

Zscaler (NASDAQ:ZS) had its price objective trimmed by Citigroup from $350.00 to $305.00 in a research note issued to investors on Tuesday morning,Benzinga reports. The brokerage currently has a buy rating on the stock.

A number of other brokerages have also recently commented on ZS. Macquarie began coverage on Zscaler in a report on Friday, October 31st. They set an “outperform” rating and a $390.00 target price for the company. Robert W. Baird lifted their target price on shares of Zscaler from $350.00 to $360.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 26th. Royal Bank Of Canada reduced their target price on shares of Zscaler from $366.00 to $290.00 and set an “outperform” rating for the company in a research report on Monday, January 5th. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 2nd. Finally, Scotiabank dropped their price objective on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research note on Wednesday, November 26th. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zscaler has a consensus rating of “Moderate Buy” and a consensus price target of $317.63.

Zscaler Price Performance

Zscaler stock opened at $210.50 on Tuesday. The stock has a market capitalization of $33.57 billion, a P/E ratio of -809.57, a P/E/G ratio of 3,521.67 and a beta of 1.02. The company’s fifty day moving average price is $249.77 and its 200 day moving average price is $278.57. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. Zscaler has a 1 year low of $164.78 and a 1 year high of $336.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.11. The business had revenue of $788.11 million for the quarter, compared to the consensus estimate of $773.86 million. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company’s revenue was up 25.5% compared to the same quarter last year. During the same period last year, the firm posted $0.77 earnings per share. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. As a group, equities research analysts anticipate that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Kevin Rubin sold 3,303 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $762,398.46. Following the transaction, the chief financial officer owned 48,161 shares of the company’s stock, valued at $11,116,522.02. This represents a 6.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Raj Judge sold 3,438 shares of the firm’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the sale, the executive vice president directly owned 70,394 shares of the company’s stock, valued at $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 22,550 shares of company stock valued at $5,511,509 in the last ninety days. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Bessemer Group Inc. grew its holdings in Zscaler by 3.2% during the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock worth $306,000 after acquiring an additional 32 shares in the last quarter. Cox Capital Mgt LLC increased its holdings in Zscaler by 0.6% in the third quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after buying an additional 33 shares during the last quarter. Brookstone Capital Management lifted its holdings in Zscaler by 3.7% during the 3rd quarter. Brookstone Capital Management now owns 936 shares of the company’s stock worth $280,000 after buying an additional 33 shares during the last quarter. Wedbush Securities Inc. lifted its holdings in Zscaler by 0.7% during the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after buying an additional 34 shares during the last quarter. Finally, Goldstream Capital Management Ltd boosted its position in shares of Zscaler by 0.3% during the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock worth $3,731,000 after acquiring an additional 34 shares in the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler shows accelerating platform traction, with management-led GTM changes and the Z‑Flex initiative reportedly driving >20% revenue growth, stronger net retention, bigger platform deals, AI security growth of >80% y/y, and Data Security ARR near $450M — a clear catalyst for upside if execution continues. Zscaler: Growth Path Ahead Has Gotten Clearer And Stronger
• Positive Sentiment: KeyCorp reiterates an Overweight stance with a $300 target and published updated quarterly and multi‑year EPS forecasts (FY26/FY27 showing improvement toward profitability). That analyst support provides a near‑term valuation tailwind vs. the recent pullback.
• Neutral Sentiment: A Seeking Alpha piece upgraded Zscaler but advised caution — the rating change signals improving sentiment, but the author recommends waiting for clearer confirmation, which can limit immediate buying. Zscaler: I Wouldn’t Pull The Trigger Just Yet (Rating Upgrade)
• Neutral Sentiment: Competitive landscape analysis vs. Netskope highlights an active, high‑growth battle for the AI‑security edge — underlines both opportunity and execution risk as customers consolidate around a preferred platform. Zscaler Vs. Netskope: The Battle For The AI Cybersecurity Edge
• Negative Sentiment: Citigroup trimmed its price target to $305, a downward revision that can pressure sentiment and cap upside for short‑term traders. Citigroup Lowers Zscaler (NASDAQ:ZS) Price Target to $305.00
• Negative Sentiment: Market reports noted Zscaler’s share dip versus the broader market, reflecting short‑term selling on the mix of analyst moves and overall sector weakness. Why Zscaler (ZS) Dipped More Than Broader Market Today

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.