Zscaler (NASDAQ:ZS) Stock Gets Price Target Increase from Needham & Company LLC

Zscaler (NASDAQ:ZS) had its price target hoisted by equities research analysts at Needham & Company LLC from $215.00 to $255.00 in a report released on Wednesday, Marketbeat reports. The firm presently has a “buy” rating on the stock. Needham & Company LLC’s price target would suggest a potential upside of 17.61% from the stock’s previous close.

Several other research analysts have also recently commented on ZS. Royal Bank Of Canada raised their target price on shares of Zscaler from $210.00 to $236.00 and gave the stock an “outperform” rating in a report on Friday, September 25th. Citigroup boosted their price target on Zscaler from $205.00 to $245.00 and gave the company a “buy” rating in a research note on Wednesday. Jefferies Financial Group reissued a “buy” rating and set a $220.00 price target on shares of Zscaler in a research report on Wednesday, September 2nd. Wolfe Research restated an “outperform” rating and set a $150.00 price objective on shares of Zscaler in a research note on Thursday, June 11th. Finally, Robert W. Baird lifted their price objective on Zscaler from $230.00 to $285.00 and gave the company an “outperform” rating in a report on Wednesday. Thirty-five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $238.07.

Zscaler Trading Up 1.5%

ZS stock opened at $216.81 on Wednesday. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a market capitalization of $35.35 billion, a PE ratio of -555.92, a price-to-earnings-growth ratio of 22.25 and a beta of 0.94. The company’s 50-day simple moving average is $184.50 and its 200 day simple moving average is $156.69. 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 quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business’s revenue was up 24.9% on a year-over-year basis. During the same quarter in the previous year, the company 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, sell-side analysts anticipate that Zscaler will post 0.7 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total transaction of $33,985.77. Following the completion of the transaction, the director directly owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 5,394 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the sale, the insider owned 61,525 shares of the company’s stock, valued at $12,305,000. The trade was a 8.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 29,053 shares of company stock worth $5,610,165 in the last three months. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several hedge funds and other institutional investors have recently modified their holdings of ZS. Handelsbanken Fonder AB lifted its position 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 buying an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. grew its position 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 acquiring an additional 11,941 shares during the last quarter. Bank of America Corp DE raised its stake in Zscaler by 44.3% during the first quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after acquiring an additional 239,326 shares in the last quarter. Danica Pension Livsforsikringsaktieselskab acquired a new position in Zscaler during the second quarter worth about $11,232,000. Finally, Amundi lifted its holdings in shares of Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after acquiring an additional 129,563 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: At its investor day, Zscaler reaffirmed its fiscal 2027 first-quarter and full-year guidance, helping ease concerns about recent go-to-market leadership changes. Management highlighted AI security, new customer entry points, cross-selling and an ambition to exceed $8 billion in organic annual recurring revenue by fiscal 2031. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Wall Street largely responded favorably: UBS, Truist, JPMorgan, Needham, Cantor Fitzgerald, Baird, Wedbush and BNP Paribas Exane raised targets, with several maintaining buy or outperform ratings. Targets generally range from $236 to $285, implying additional upside from recent trading levels. Wall Street sees 29% upside for Zscaler
• Positive Sentiment: A new IBM and Red Hat partnership will combine Zscaler’s Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows, including attacks assisted by AI. The agreement could expand Zscaler’s enterprise reach and reinforce its AI-security growth narrative. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Analysts see strong long-term potential from AI security, broader product adoption and cross-selling, but Morgan Stanley maintained an equal-weight view and questioned whether client growth will accelerate enough to support the ambitious long-term targets.
• Negative Sentiment: Jefferies called Zscaler’s $10 billion fiscal 2031 ARR goal ambitious, while commentary on the stock’s 45% three-month rally cited slowing growth and rising costs as reasons investors may consider taking profits. BTIG retained a neutral rating, and Pomerantz LLP announced an investigation into potential investor claims, adding a legal headline risk. Jefferies on Zscaler’s long-term ARR target

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.