Royal Bank Of Canada Reaffirms Outperform Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reissued by investment analysts at Royal Bank Of Canada in a note issued to investors on Wednesday, Benzinga reports. They presently have a $236.00 price target on the stock. Royal Bank Of Canada’s price objective would indicate a potential upside of 11.82% from the stock’s previous close.

Several other equities research analysts also recently weighed in on the company. Piper Sandler raised their price target on Zscaler from $160.00 to $175.00 and gave the stock a “neutral” rating in a report on Friday, September 4th. Wedbush lifted their target price on Zscaler from $215.00 to $240.00 and gave the stock an “outperform” rating in a report on Wednesday. JPMorgan Chase & Co. lifted their target price on Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a report on Wednesday, August 26th. Needham & Company LLC lifted their target price on Zscaler from $215.00 to $255.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, Mizuho set a $235.00 target price on Zscaler in a report on Wednesday. Thirty-four equities 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. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $233.28.

Zscaler Stock Down 0.6%

NASDAQ ZS traded down $1.19 during trading on Wednesday, hitting $211.06. The company’s stock had a trading volume of 559,330 shares, compared to its average volume of 3,356,544. 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 company has a market cap of $34.41 billion, a PE ratio of -539.32, a P/E/G ratio of 21.03 and a beta of 0.94. The business’s 50 day simple moving average is $181.94 and its 200-day simple moving average is $155.82. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99.

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

Insider Buying and Selling

In other Zscaler news, insider Robert Schlossman sold 5,394 shares of the business’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 $1,078,800.00. Following the transaction, the insider owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. The trade was a 8.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 company’s stock in a transaction 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 directly owned 340,186 shares in the company, valued at approximately $65,574,253.36. This trade represents a 0.83% decrease in their position. 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 three months, insiders sold 29,053 shares of company stock worth $5,610,165. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Several large investors have recently modified their holdings of ZS. BlackRock Inc. acquired a new stake in Zscaler in the 2nd quarter valued at about $1,396,028,000. First Trust Advisors LP raised its position in 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 purchasing an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Zscaler in the 2nd quarter valued at about $102,271,000. Pictet Asset Management Holding SA raised its position in 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 purchasing an additional 661,413 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in Zscaler in the 2nd quarter valued at about $89,740,000. Institutional investors and hedge funds 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 outlook, reducing near-term execution concerns. Management highlighted demand for zero-trust security as enterprises adopt AI and AI agents. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: Multiple bullish target increases: Robert W. Baird raised its target to $285 and maintained an outperform rating; Cantor Fitzgerald raised its target to $275 and assigned overweight; Needham lifted its target to $255 and assigned buy; and Wedbush raised its target to $240 with an outperform rating. These revisions indicate improving Wall Street expectations following the event.
• Positive Sentiment: AI cybersecurity opportunity: Analysts cited Zscaler’s expansion beyond core user security, new customer entry points, stronger cash-flow potential and a broader role in securing AI systems. The company’s long-term strategy reportedly includes an $8 billion-plus annual recurring revenue opportunity and a $10 billion ARR target by fiscal 2031. ZS Stock Draws Multiple Target Hikes After Investor Day
• Positive Sentiment: IBM and Red Hat partnership: Zscaler will combine its Autonomous Application Shield with IBM and Red Hat remediation tools to protect private applications during vulnerability windows, including attacks supported by AI. The deal could strengthen Zscaler’s enterprise distribution and product positioning. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Mixed analyst views: BTIG reaffirmed a neutral rating, while Morgan Stanley raised its target to $185 but retained equal weight—below the current trading level. This suggests valuation remains a concern despite the improved outlook.
• Negative Sentiment: Investor-law-firm investigation: Pomerantz announced an investigation into potential claims on behalf of Zscaler investors. The notice provides no findings, but such announcements can create headline and litigation overhang. Pomerantz Investor Alert

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.