Zscaler (NASDAQ:ZS) Price Target Raised to $245.00

Zscaler (NASDAQ:ZS) had its price objective hoisted by investment analysts at JPMorgan Chase & Co. from $215.00 to $245.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 15.46% from the company’s current price.

Other equities analysts also recently issued reports about the stock. Robert W. Baird upped their target price on shares of Zscaler from $230.00 to $285.00 and gave the stock an “outperform” rating in a research note on Wednesday. Stifel Nicolaus lifted their price target on shares of Zscaler from $200.00 to $235.00 and gave the company a “buy” rating in a research note on Wednesday. TD Cowen boosted their price target on Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a report on Wednesday. Canaccord Genuity Group set a $250.00 price objective on Zscaler in a research note on Wednesday. Finally, BMO Capital Markets lifted their target price on Zscaler from $178.00 to $200.00 and gave the company an “outperform” rating in a research report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $235.15.

Zscaler Trading Down 0.0%

Shares of NASDAQ:ZS traded down $0.06 on Wednesday, hitting $212.19. 1,145,896 shares of the company’s stock were exchanged, compared to its average volume of 3,360,074. The stock has a market capitalization of $34.60 billion, a price-to-earnings ratio of -542.27, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. The business’s 50 day simple moving average is $181.94 and its two-hundred day simple moving average is $155.82.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. The firm had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same period in the prior year, the business posted $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. Analysts anticipate that Zscaler will post 0.7 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In related news, CEO Jagtar Chaudhry sold 2,852 shares of the business’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 value of $549,751.52. Following the completion of the transaction, the chief executive officer owned 340,186 shares of the company’s stock, valued at $65,574,253.36. The trade was a 0.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 5,394 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 value of $1,078,800.00. Following the sale, the insider owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. This represents a 8.06% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 29,053 shares of company stock valued at $5,610,165. 17.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in ZS. BlackRock Inc. purchased a new position in Zscaler in the second quarter valued at about $1,396,028,000. First Trust Advisors LP boosted its holdings in shares of Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after buying an additional 935,781 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after buying an additional 661,413 shares in the last quarter. Amundi grew its position in shares of Zscaler by 12.8% in the 2nd quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after buying an additional 129,563 shares during the last quarter. Finally, Wellington Management Group LLP grew its position in shares of Zscaler by 23.5% in the 2nd quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock worth $155,718,000 after buying an additional 209,711 shares during the last quarter. Institutional investors own 46.45% of the company’s stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
• Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
• Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
• Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
• Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

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.