Zscaler, Inc. (NASDAQ:ZS) Stock Has Consensus Price Target of $219.78 According to Analysts

Shares of Zscaler, Inc. (NASDAQ:ZS) have received an average rating of “Moderate Buy” from the forty-three ratings firms that are covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and thirty-five have assigned a buy rating to the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $239.41.

A number of research analysts recently weighed in on the stock. UBS Group raised their price target on shares of Zscaler from $225.00 to $250.00 and gave the company a “buy” rating in a research report on Wednesday, October 7th. Sanford C. Bernstein upped their price objective on shares of Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research report on Thursday, September 17th. Barclays increased their price objective on shares of Zscaler from $220.00 to $225.00 and gave the company an “overweight” rating in a research note on Wednesday. Cantor Fitzgerald increased their price objective on shares of Zscaler from $225.00 to $275.00 and gave the company an “overweight” rating in a research note on Wednesday, October 7th. Finally, TD Cowen lifted their target price on shares of Zscaler from $200.00 to $230.00 and gave the stock a “buy” rating in a research report on Wednesday.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

Insiders Place Their Bets

In related news, insider Robert Schlossman sold 5,394 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $200.00, for a total transaction of $1,078,800.00. Following the completion of the sale, the insider directly owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. This trade represents a 8.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 5,957 shares of Zscaler stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $1,148,271.32. Following the sale, the chief financial officer owned 43,287 shares in the company, valued at $8,344,002.12. This trade represents a 12.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 29,053 shares of company stock worth $5,610,165 over the last 90 days. 17.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Handelsbanken Fonder AB increased its stake in shares of Zscaler by 89.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock worth $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. lifted its stake in Zscaler by 6.6% in the second quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock valued at $27,284,000 after purchasing an additional 11,941 shares during the last quarter. Bank of America Corp DE lifted its stake in Zscaler by 44.3% in the first quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock valued at $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab purchased a new position in Zscaler in the second quarter valued at approximately $11,232,000. Finally, Amundi grew its holdings in Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after purchasing an additional 129,563 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler Stock Performance

NASDAQ ZS opened at $233.73 on Monday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The business has a fifty day simple moving average of $186.15 and a 200 day simple moving average of $157.26. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The firm has a market capitalization of $38.11 billion, a P/E ratio of -599.31, a PEG ratio of 22.46 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same period in the previous year, the firm earned $0.89 EPS. The business’s revenue for the quarter was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, analysts predict that Zscaler will post 0.69 EPS for the current fiscal year.

About Zscaler

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.