Zscaler (NASDAQ:ZS) Stock Price Target Raised at Needham & Company LLC

Zscaler (NASDAQ:ZS) had its price objective boosted by equities research analysts at Needham & Company LLC from $215.00 to $255.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s price objective indicates a potential upside of 20.14% from the stock’s current price.

ZS has been the subject of several other research reports. JPMorgan Chase & Co. boosted their price target on shares of Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a report on Wednesday, August 26th. TD Cowen reiterated a “buy” rating and issued a $200.00 price objective on shares of Zscaler in a research report on Friday, September 4th. Wedbush reissued an “outperform” rating and set a $215.00 target price on shares of Zscaler in a research note on Monday, September 28th. Rosenblatt Securities restated a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research report on Friday, September 4th. Finally, Stifel Nicolaus raised their price target on shares of Zscaler from $175.00 to $200.00 and gave the company a “buy” rating in a research note on Wednesday, August 19th. Thirty-four equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $224.90.

Zscaler Trading Up 5.2%

NASDAQ ZS opened at $212.25 on Wednesday. The firm has a market capitalization of $34.61 billion, a PE ratio of -544.23, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. The company has a 50-day simple moving average of $181.94 and a 200-day simple moving average of $155.82. Zscaler has a one year low of $114.63 and a one year high of $336.99. 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 announced its quarterly earnings results 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. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The business had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same quarter last year, the business posted $0.89 EPS. The business’s 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, equities analysts forecast that Zscaler will post 0.7 earnings per share for the current year.

Insider Activity at Zscaler

In related news, insider Adam Geller sold 661 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 transaction of $132,200.00. Following the transaction, the insider directly owned 38,308 shares of the company’s stock, valued at approximately $7,661,600. The trade was a 1.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jagtar Chaudhry sold 2,852 shares of the stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $549,751.52. Following the completion of the sale, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at approximately $65,574,253.36. This represents a 0.83% 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. Over the last 90 days, insiders sold 29,053 shares of company stock worth $5,610,165. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several institutional investors have recently made changes to their positions in ZS. BlackRock Inc. purchased a new position in shares of Zscaler during the 2nd quarter valued at $1,396,028,000. First Trust Advisors LP raised its holdings in shares of Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after acquiring an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler during the second quarter valued at $102,271,000. Pictet Asset Management Holding SA boosted its position in Zscaler by 52.5% during 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 purchased a new position in Zscaler in the second quarter valued at about $89,740,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Fiscal 2027 guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, removing a key uncertainty for investors. Management’s guidance includes FY27 EPS of approximately $4.86–$4.90 and Q1 EPS of $1.15–$1.16. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: AI is strengthening demand: Management said enterprises need stronger zero-trust defenses as AI agents create new attack surfaces and cyber risks. Investors viewed this as a potentially significant growth tailwind for Zscaler’s cloud security platform. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Analyst target raised: Stifel increased its price target, citing Zscaler’s prospects in AI cybersecurity. The target revision adds to bullish sentiment surrounding the company’s growth outlook. Zscaler: Stifel hikes target on AI cybersecurity prospects
• Positive Sentiment: IBM and Red Hat collaboration: Zscaler is working with IBM and Red Hat on protection for private applications during the period between vulnerability disclosure and patch deployment, expanding its enterprise security ecosystem. Zscaler Collaborates with IBM and Red Hat
• Neutral Sentiment: One analyst retained a Buy rating but lowered conviction from an earlier stronger stance. The analyst cited roughly 25% revenue growth, improving profitability, a net-cash balance sheet and a long-term $10 billion ARR target, while highlighting valuation and execution expectations. Zscaler Analyst Rating
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were provided, but the announcement creates a modest headline and litigation overhang. 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.