Zscaler’s (ZS) Buy Rating Reiterated at Rosenblatt Securities

Rosenblatt Securities restated their buy rating on shares of Zscaler (NASDAQ:ZS) in a research report report published on Friday morning,Benzinga reports. They currently have a $200.00 price target on the stock.

Other equities analysts also recently issued research reports about the company. Morgan Stanley dropped their price objective 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. HC Wainwright raised Zscaler from a “buy” rating to a “buy” rating in a research report on Monday, May 18th. JPMorgan Chase & Co. increased their price target on Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 26th. BTIG Research reissued a “neutral” rating on shares of Zscaler in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft lowered their price objective on Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $215.90.

Zscaler Stock Performance

NASDAQ ZS opened at $169.80 on Friday. The company has a market capitalization of $27.69 billion, a PE ratio of -435.38, a price-to-earnings-growth ratio of 99.94 and a beta of 0.95. 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 has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a 50-day simple moving average of $161.26 and a 200 day simple moving average of $150.34.

Zscaler (NASDAQ:ZS) last released 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. 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 analysts’ expectations of $876.96 million. During the same period in the previous year, the company earned $0.89 earnings per share. The company’s quarterly revenue was up 24.9% on a year-over-year basis. 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, research analysts predict that Zscaler will post 0.13 EPS for the current year.

Insider Buying and Selling

In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the firm’s stock in a transaction dated 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 in the company, valued at $5,204,942.22. This trade represents a 6.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the company’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the sale, the insider owned 69,366 shares in the company, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 16,772 shares of company stock valued at $2,139,799 in the last ninety days. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently bought and sold shares of ZS. California State Teachers Retirement System increased its holdings in Zscaler by 13,837.9% during the 2nd quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock worth $2,736,727,000 after acquiring an additional 19,249,679 shares during the period. BlackRock Inc. bought a new position in shares of Zscaler in the second quarter worth $1,396,028,000. First Trust Advisors LP raised its position in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after buying an additional 935,781 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares during the period. Finally, State Street Corp increased its stake in Zscaler by 3.4% in the 4th quarter. State Street Corp now owns 2,337,604 shares of the company’s stock worth $525,774,000 after acquiring an additional 77,800 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Headlines 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

Zscaler Company Profile

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.