Zscaler (NASDAQ:ZS) Given New $230.00 Price Target at Robert W. Baird

Zscaler (NASDAQ:ZS) had its price objective boosted by Robert W. Baird from $220.00 to $230.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an “outperform” rating on the stock. Robert W. Baird’s price target would suggest a potential upside of 36.62% from the company’s previous close.

Several other equities research analysts also recently issued reports on ZS. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Zscaler in a report on Friday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research report on Friday. Wedbush reiterated an “outperform” rating and set a $220.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. UBS Group cut their price target on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Finally, KeyCorp raised their price objective on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a research note on Friday, August 21st. Thirty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $217.33.

Zscaler Trading Down 5.3%

Shares of NASDAQ:ZS traded down $9.45 during mid-day trading on Friday, reaching $168.35. 3,557,819 shares of the company were exchanged, compared to its average volume of 3,350,059. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The firm has a market cap of $27.22 billion, a price-to-earnings ratio of -351.38, a P/E/G ratio of 101.67 and a beta of 0.95. The firm’s 50-day simple moving average is $160.51 and its 200 day simple moving average is $150.39. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $898.18 million during the quarter, compared to the consensus estimate of $876.96 million. During the same quarter last year, the firm earned $0.89 EPS. The firm’s revenue for the quarter 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. Equities research analysts forecast that Zscaler will post 0.13 EPS for the current year.

Insider Buying and Selling

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their ownership of the stock. 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 16,772 shares of company stock worth $2,139,799 in the last quarter. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several hedge funds and other institutional investors have recently bought and sold shares of ZS. Integrated Wealth Concepts LLC boosted its position in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares during the period. NewEdge Advisors LLC increased its position in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after buying an additional 370 shares during the period. Empowered Funds LLC lifted its stake in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after buying an additional 238 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Zscaler in the second quarter valued at approximately $252,000. Finally, Jump Financial LLC acquired a new stake in shares of Zscaler in the second quarter valued at approximately $3,019,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Results exceeded expectations: Q4 revenue rose 25% year over year to $898.2 million, above the $877.0 million consensus, while adjusted EPS of $1.19 topped estimates of $1.09. Annual recurring revenue also increased 25% to $3.77 billion. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: AI is emerging as a key growth driver: Management said demand for Security for AI, Agentic SecOps and metered offerings is accelerating, with AI-related bookings and large enterprise deals supporting adoption into fiscal 2027. The company also delivered a record 24% non-GAAP operating margin. ZS Q4 Earnings Call Highlights AI Tailwinds and Fiscal 2027 Outlook
• Positive Sentiment: Analyst sentiment remained broadly supportive: Stephens raised its target to $225, while Needham raised its target to $215. Canaccord Genuity, Cantor Fitzgerald, TD Cowen and Rosenblatt reaffirmed positive ratings with targets ranging from $200 to $225.
• Neutral Sentiment: Fiscal 2027 guidance was strong but slower: Zscaler forecast Q1 revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16, ahead of consensus. Full-year revenue guidance of $3.91 billion to $3.94 billion implies 16.6% to 17.5% growth, a notable deceleration from fiscal 2026’s 25% growth. Zscaler Forecasts Fiscal 2027 Growth
• Negative Sentiment: Cash generation disappointed: Q4 free cash flow fell 65% year over year to $60.8 million, or 7% of revenue, versus $171.9 million previously. The decline reflected substantially higher property, equipment and internal-use software spending, prompting concerns about near-term liquidity and investment efficiency. Zscaler Shares Fall Despite Earnings Beat as Free Cash Flow Slides
• Negative Sentiment: Restructuring highlights execution concerns: Zscaler plans to reduce its workforce by approximately 3% as it reallocates resources toward AI and other growth initiatives. The company also remains GAAP-unprofitable, reporting a Q4 net loss of $3.4 million.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.