Zscaler (NASDAQ:ZS) Price Target Raised to $230.00

Zscaler (NASDAQ:ZS) had its price target lifted by Robert W. Baird from $220.00 to $230.00 in a research report released on Friday,Benzinga reports. The firm currently has an outperform rating on the stock.

A number of other analysts have also recently commented on the company. Canaccord Genuity Group reiterated a “buy” rating and set a $210.00 price objective on shares of Zscaler in a research report on Friday. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research report on Friday. Cantor Fitzgerald restated an “overweight” rating and set a $225.00 price target on shares of Zscaler in a research note on Friday. Piper Sandler boosted their price target on Zscaler from $160.00 to $175.00 and gave the company a “neutral” rating in a research note on Friday. Finally, Needham & Company LLC upped their price target on shares of Zscaler from $180.00 to $215.00 and gave the company a “buy” rating in a research report on Friday. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and a consensus target price of $215.90.

Zscaler Stock Performance

Shares of ZS stock opened at $169.80 on Friday. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The stock has a market capitalization of $27.69 billion, a P/E ratio of -435.38, a P/E/G ratio of 99.94 and a beta of 0.95. The firm’s 50 day moving average is $161.26 and its 200 day moving average is $150.34.

Zscaler (NASDAQ:ZS) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million during 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 company’s quarterly revenue was up 24.9% compared to the same quarter last year. 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. Research analysts expect that Zscaler will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Jagtar Chaudhry sold 2,878 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. The trade was a 0.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer owned 41,901 shares of the company’s stock, valued at $5,204,942.22. The trade was a 6.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,772 shares of company stock valued at $2,139,799 in the last 90 days. 17.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors have recently bought and sold shares of the stock. Binnacle Investments Inc purchased a new stake in Zscaler in the 3rd quarter worth $25,000. AlphaCentric Advisors LLC bought a new stake in shares of Zscaler in the fourth quarter worth about $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zscaler in the fourth quarter worth about $30,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler in the fourth quarter worth about $32,000. Finally, Strive Financial Group LLC purchased a new stake in shares of Zscaler in the fourth quarter worth about $39,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.