Needham & Company LLC Issues Positive Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price objective raised by equities researchers at Needham & Company LLC from $180.00 to $215.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a “buy” rating on the stock. Needham & Company LLC’s target price would suggest a potential upside of 20.92% from the stock’s current price.

Several other brokerages have also commented on ZS. Morgan Stanley cut their price target on Zscaler from $155.00 to $145.00 and set an “equal weight” rating on the stock in a research note on Wednesday, May 27th. B. Riley Financial lowered their price objective on shares of Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. BMO Capital Markets reiterated an “outperform” rating and set a $200.00 target price (up from $178.00) on shares of Zscaler in a report on Friday. Canaccord Genuity Group reissued a “buy” rating and set a $210.00 target price on shares of Zscaler in a research report on Thursday, June 11th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $225.00 price target on shares of Zscaler in a report on Friday. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $214.90.

Zscaler Stock Performance

Zscaler stock opened at $177.80 on Friday. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The company has a market capitalization of $28.75 billion, a PE ratio of -370.41, a P/E/G ratio of 101.67 and a beta of 0.95. The company has a 50 day moving average price of $160.51 and a 200-day moving average price of $150.39. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.18 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.Zscaler’s revenue was up 24.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.89 earnings per share. 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 analysts forecast that Zscaler will post 0.13 earnings per share for the current year.

Insider Activity

In other news, insider Adam Geller sold 2,817 shares of Zscaler stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. The trade was a 6.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of the business’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 transaction of $372,660.00. Following the transaction, the chief financial officer owned 41,901 shares of the company’s stock, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 16,772 shares of company stock valued at $2,139,799. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the company. Binnacle Investments Inc purchased a new stake in shares of Zscaler during the 3rd quarter valued at $25,000. AlphaCentric Advisors LLC purchased a new position in Zscaler during the 4th quarter worth $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in Zscaler during the 4th quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new position in Zscaler during the 4th quarter valued at about $32,000. Finally, Strive Financial Group LLC acquired a new position in Zscaler during the 4th quarter valued at about $39,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

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.