Zscaler (NASDAQ:ZS) Price Target Raised to $185.00

Zscaler (NASDAQ:ZS) had its price objective hoisted by stock analysts at Morgan Stanley from $165.00 to $185.00 in a research report issued on Wednesday, Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s price target would indicate a potential downside of 12.84% from the stock’s previous close.

Several other equities research analysts have also weighed in on ZS. Jefferies Financial Group reiterated a “buy” rating and issued a $220.00 price objective on shares of Zscaler in a research note on Wednesday, September 2nd. JPMorgan Chase & Co. raised their target price on Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 26th. Scotiabank boosted their price target on Zscaler from $200.00 to $240.00 and gave the company an “outperform” rating in a research note on Monday. BMO Capital Markets increased their price objective on Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a research note on Friday, September 4th. Finally, TD Cowen reissued a “buy” rating and set a $200.00 price objective on shares of Zscaler in a report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and an average target price of $224.90.

Zscaler Price Performance

NASDAQ:ZS opened at $212.25 on Wednesday. The company has a 50-day moving average of $181.94 and a 200-day moving average of $155.82. The company has a market capitalization of $34.61 billion, a price-to-earnings ratio of -544.23, a PEG ratio of 21.03 and a beta of 0.94. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. The business had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm’s revenue was up 24.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, equities research analysts anticipate that Zscaler will post 0.7 earnings per share for the current fiscal year.

Insider Activity

In other Zscaler news, insider Adam Geller sold 661 shares of Zscaler stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $132,200.00. Following the completion of the transaction, the insider owned 38,308 shares in the company, valued at approximately $7,661,600. The trade was a 1.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the stock in a transaction on Friday, September 25th. The stock was sold at an average price of $197.28, for a total value of $102,388.32. Following the sale, the chief financial officer owned 42,768 shares in the company, valued at $8,437,271.04. The trade was a 1.20% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 29,053 shares of company stock worth $5,610,165. 17.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bangor Savings Bank lifted its position in shares of Zscaler by 2.0% during the third quarter. Bangor Savings Bank now owns 8,273 shares of the company’s stock worth $1,650,000 after purchasing an additional 165 shares in the last quarter. Moody National Bank Trust Division grew its stake in shares of Zscaler by 57.8% during the third quarter. Moody National Bank Trust Division now owns 3,091 shares of the company’s stock valued at $616,000 after purchasing an additional 1,132 shares during the last quarter. CX Institutional increased its holdings in shares of Zscaler by 15.9% in the third quarter. CX Institutional now owns 611 shares of the company’s stock valued at $122,000 after purchasing an additional 84 shares in the last quarter. Versant Capital Management Inc raised its position in Zscaler by 45.6% in the 3rd quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock worth $46,000 after purchasing an additional 72 shares during the last quarter. Finally, Burkett Financial Services LLC bought a new position in Zscaler in the 3rd quarter worth approximately $27,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Fiscal 2027 guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, removing a key uncertainty for investors. Management’s guidance includes FY27 EPS of approximately $4.86–$4.90 and Q1 EPS of $1.15–$1.16. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: AI is strengthening demand: Management said enterprises need stronger zero-trust defenses as AI agents create new attack surfaces and cyber risks. Investors viewed this as a potentially significant growth tailwind for Zscaler’s cloud security platform. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Analyst target raised: Stifel increased its price target, citing Zscaler’s prospects in AI cybersecurity. The target revision adds to bullish sentiment surrounding the company’s growth outlook. Zscaler: Stifel hikes target on AI cybersecurity prospects
• Positive Sentiment: IBM and Red Hat collaboration: Zscaler is working with IBM and Red Hat on protection for private applications during the period between vulnerability disclosure and patch deployment, expanding its enterprise security ecosystem. Zscaler Collaborates with IBM and Red Hat
• Neutral Sentiment: One analyst retained a Buy rating but lowered conviction from an earlier stronger stance. The analyst cited roughly 25% revenue growth, improving profitability, a net-cash balance sheet and a long-term $10 billion ARR target, while highlighting valuation and execution expectations. Zscaler Analyst Rating
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were provided, but the announcement creates a modest headline and litigation overhang. Pomerantz Investor Alert

Zscaler Company Profile

Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.