Zscaler’s (ZS) Outperform Rating Reiterated at Royal Bank Of Canada

Royal Bank Of Canada reaffirmed their outperform rating on shares of Zscaler (NASDAQ:ZS) in a research report report published on Wednesday,Benzinga reports. Royal Bank Of Canada currently has a $236.00 price objective on the stock.

Other research analysts also recently issued reports about the company. Wolfe Research reissued an “outperform” rating and issued a $150.00 target price on shares of Zscaler in a report on Thursday, June 11th. Weiss Ratings raised Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, September 24th. Guggenheim boosted their price objective on Zscaler from $214.00 to $254.00 and gave the stock a “buy” rating in a research note on Wednesday. Stifel Nicolaus increased their target price on Zscaler from $200.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Roth Capital reaffirmed a “neutral” rating and issued a $170.00 price target on shares of Zscaler in a report on Saturday, September 5th. Thirty-five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Zscaler has a consensus rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Trading Up 7.8%

Shares of ZS stock opened at $233.73 on Wednesday. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a market capitalization of $38.11 billion, a P/E ratio of -599.31, a P/E/G ratio of 20.84 and a beta of 0.94. The firm has a 50-day moving average price of $186.15 and a 200 day moving average price of $157.22. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the previous year, the business 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. Research analysts forecast that Zscaler will post 0.69 earnings per share for the current fiscal year.

Insider Activity at Zscaler

In related news, insider Robert Schlossman sold 5,394 shares of Zscaler stock in a transaction dated 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 completion of the sale, the insider directly owned 61,525 shares in the company, valued at $12,305,000. This trade represents a 8.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the business’s stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $197.28, for a total value of $102,388.32. Following the sale, the chief financial officer directly owned 42,768 shares of the company’s stock, valued at $8,437,271.04. This represents a 1.20% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 valued at $5,610,165 over the last quarter. 17.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZS. Burkett Financial Services LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth approximately $27,000. University of Texas Texas AM Investment Management Co. acquired a new position in Zscaler in the fourth quarter valued at approximately $30,000. POM Investment Strategies LLC lifted its holdings in Zscaler by 92.9% in the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after buying an additional 105 shares during the period. Elevation Wealth Partners LLC boosted its stake in Zscaler by 84.3% in the third quarter. Elevation Wealth Partners LLC now owns 153 shares of the company’s stock valued at $31,000 after acquiring an additional 70 shares during the last quarter. Finally, Western Wealth Management LLC bought a new position in Zscaler in the first quarter valued at approximately $33,000. 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: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

Zscaler Company Profile

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.