Zscaler (NASDAQ:ZS) Stock Gets Price Target Bump from UBS Group

Zscaler (NASDAQ:ZS) had its price target upped by UBS Group from $225.00 to $250.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. UBS Group’s price objective points to a potential upside of 17.07% from the company’s current price.

ZS has been the topic of several other reports. KeyCorp upped their price target on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a report on Friday, August 21st. Stephens raised their price objective on shares of Zscaler from $225.00 to $265.00 and gave the stock an “overweight” rating in a research note on Wednesday. Mizuho set a $235.00 target price on Zscaler in a research report on Wednesday. Piper Sandler upped their target price on Zscaler from $160.00 to $175.00 and gave the company a “neutral” rating in a research note on Friday, September 4th. Finally, Canaccord Genuity Group increased their price target on Zscaler from $210.00 to $250.00 and gave the stock a “buy” rating in a report on Wednesday. Thirty-five investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $238.07.

Zscaler Trading Up 0.6%

NASDAQ:ZS traded up $1.30 during midday trading on Wednesday, hitting $213.55. 2,684,756 shares of the company traded hands, compared to its average volume of 3,368,500. The firm has a market capitalization of $34.82 billion, a P/E ratio of -547.56, a P/E/G ratio of 21.03 and a beta of 0.94. The firm’s fifty day moving average is $181.94 and its 200-day moving average is $155.82. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. 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 (NASDAQ:ZS) last posted its quarterly earnings data 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 business had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. During the same quarter in the previous year, the business posted $0.89 earnings per share. The business’s revenue 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, sell-side analysts predict that Zscaler will post 0.7 EPS for the current year.

Insider Activity at Zscaler

In other news, insider Adam Geller sold 5,578 shares of the firm’s stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the transaction, the insider directly owned 43,553 shares of the company’s stock, valued at approximately $8,395,276.28. This trade represents a 11.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,852 shares of Zscaler stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $549,751.52. Following the sale, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at $65,574,253.36. This represents a 0.83% decrease in their position. 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 valued at $5,610,165 over the last 90 days. 17.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zscaler

Hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Zscaler during the 2nd quarter valued at $1,396,028,000. First Trust Advisors LP lifted its stake in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Zscaler during the 2nd quarter worth $102,271,000. Pictet Asset Management Holding SA grew its stake in Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after purchasing an additional 661,413 shares during the last quarter. Finally, Legal & General Group Plc bought a new position in Zscaler in the second quarter worth about $89,740,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guidance reaffirmed: Zscaler maintained its first-quarter and fiscal 2027 financial guidance, reducing concerns that recent go-to-market leadership changes could disrupt execution. Management also outlined a long-term path toward $10 billion in annual recurring revenue by fiscal 2031. Zscaler Investor Day announcement
• Positive Sentiment: AI security opportunity: Analysts cited rising demand to secure AI agents, stronger new-customer sales and broader product adoption as potential growth catalysts. Zscaler’s partnership with IBM and Red Hat will combine its Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows. Zscaler IBM and Red Hat partnership
• Positive Sentiment: Broad analyst support: Cantor Fitzgerald, Baird, Needham, Truist, BNP Paribas Exane, JPMorgan, Wedbush and RBC raised price targets or maintained bullish ratings. Targets included $240 to $285, with Baird at $285 and Cantor at $275, signaling meaningful perceived upside from recent trading levels.
• Positive Sentiment: RBC and Morgan Stanley said new disclosures improve the cross-selling story and expand customer entry points, while Oppenheimer expects AI security and sales investments to support growth.
• Neutral Sentiment: Analyst views remain mixed. BTIG reiterated a neutral rating, and Morgan Stanley raised its target to $185 but kept an equal-weight rating—below the current share price—highlighting valuation and execution risks.
• Negative Sentiment: Jefferies described the $10 billion fiscal 2031 ARR goal as ambitious, making sustained execution essential. A Pomerantz investigation announcement also introduces a potential headline and legal overhang for investors. Pomerantz investor alert

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.