Zscaler (NASDAQ:ZS) Stock Gets Price Target Bump from Robert W. Baird

Zscaler (NASDAQ:ZS) had its target price upped by equities researchers at Robert W. Baird from $230.00 to $285.00 in a research note issued to investors on Wednesday, Marketbeat reports. The brokerage presently has an “outperform” rating on the stock. Robert W. Baird’s price target would indicate a potential upside of 31.45% from the company’s current price.

Several other brokerages have also recently weighed in on ZS. Stephens set a $215.00 price objective on shares of Zscaler in a research note on Friday, September 4th. Needham & Company LLC increased their price target on shares of Zscaler from $180.00 to $215.00 and gave the stock a “buy” rating in a research report on Friday, September 4th. KeyCorp increased their price target on shares of Zscaler from $185.00 to $210.00 and gave the stock an “overweight” rating in a research report on Friday, August 21st. Weiss Ratings upgraded shares of Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, September 24th. Finally, TD Cowen reissued a “buy” rating and set a $200.00 price objective on shares of Zscaler in a research report on Friday, September 4th. Thirty-five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and a consensus price target of $238.07.

Zscaler Stock Up 1.5%

Zscaler stock opened at $216.81 on Wednesday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The stock has a fifty day moving average of $184.50 and a 200 day moving average of $156.69. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a market cap of $35.35 billion, a PE ratio of -555.92, a price-to-earnings-growth ratio of 22.25 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last announced its 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. The business had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The business’s revenue for the quarter was up 24.9% on a year-over-year basis. During the same period last year, the firm 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. As a group, sell-side analysts predict that Zscaler will post 0.7 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, Director James A. Beer sold 177 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total value of $33,985.77. Following the completion of the transaction, the director directly owned 4,030 shares in the company, valued at $773,800.30. This represents a 4.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the stock in a transaction on Friday, September 25th. The stock was sold at an average price of $197.28, for a total transaction of $102,388.32. Following the completion of the sale, the chief financial officer directly owned 42,768 shares of the company’s stock, valued at approximately $8,437,271.04. This trade represents a 1.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,053 shares of company stock worth $5,610,165 in the last 90 days. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in Zscaler in the 2nd quarter worth $1,396,028,000. First Trust Advisors LP increased its stake in Zscaler by 36.2% in the 1st 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. Pictet Asset Management Holding SA raised its holdings 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 acquiring an additional 661,413 shares during the period. Amundi raised its holdings in Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after acquiring an additional 129,563 shares during the period. Finally, Wellington Management Group LLP lifted its position in shares of Zscaler by 23.5% in the second quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock valued at $155,718,000 after acquiring an additional 209,711 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: At its investor day, Zscaler reaffirmed its fiscal 2027 first-quarter and full-year guidance, helping ease concerns about recent go-to-market leadership changes. Management highlighted AI security, new customer entry points, cross-selling and an ambition to exceed $8 billion in organic annual recurring revenue by fiscal 2031. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Wall Street largely responded favorably: UBS, Truist, JPMorgan, Needham, Cantor Fitzgerald, Baird, Wedbush and BNP Paribas Exane raised targets, with several maintaining buy or outperform ratings. Targets generally range from $236 to $285, implying additional upside from recent trading levels. Wall Street sees 29% upside for Zscaler
• Positive Sentiment: A new IBM and Red Hat partnership will combine Zscaler’s Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows, including attacks assisted by AI. The agreement could expand Zscaler’s enterprise reach and reinforce its AI-security growth narrative. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Analysts see strong long-term potential from AI security, broader product adoption and cross-selling, but Morgan Stanley maintained an equal-weight view and questioned whether client growth will accelerate enough to support the ambitious long-term targets.
• Negative Sentiment: Jefferies called Zscaler’s $10 billion fiscal 2031 ARR goal ambitious, while commentary on the stock’s 45% three-month rally cited slowing growth and rising costs as reasons investors may consider taking profits. BTIG retained a neutral rating, and Pomerantz LLP announced an investigation into potential investor claims, adding a legal headline risk. Jefferies on Zscaler’s long-term ARR target

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.