Zscaler’s (ZS) “Outperform” Rating Reaffirmed at Royal Bank Of Canada

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating restated by equities research analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $236.00 price target on the stock. Royal Bank Of Canada’s target price would suggest a potential upside of 10.84% from the company’s current price.

ZS has been the topic of several other research reports. Wells Fargo & Company reaffirmed an “overweight” rating and set a $260.00 price target on shares of Zscaler in a research report on Wednesday. Wedbush raised their target price on shares of Zscaler from $215.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday. JPMorgan Chase & Co. boosted their target price on shares of Zscaler from $205.00 to $215.00 and gave the stock an “overweight” rating in a report on Wednesday, August 26th. Stephens reissued an “overweight” rating and issued a $265.00 price objective on shares of Zscaler in a research report on Wednesday. Finally, Weiss Ratings upgraded shares of Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, September 24th. Thirty-four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and a consensus target price of $233.28.

Zscaler Stock Up 0.3%

Shares of Zscaler stock traded up $0.67 during trading hours on Wednesday, reaching $212.92. 482,445 shares of the company’s stock were exchanged, compared to its average volume of 3,355,947. The company has a 50 day moving average of $181.94 and a two-hundred day moving average of $155.82. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock has a market cap of $34.72 billion, a P/E ratio of -545.02, a P/E/G ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The business had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same quarter in the previous year, the business earned $0.89 earnings per share. Zscaler’s quarterly revenue 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. On average, sell-side analysts forecast that Zscaler will post 0.7 EPS for the current fiscal year.

Insider Activity at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 5,957 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the transaction, the chief financial officer directly owned 43,287 shares of the company’s stock, valued at $8,344,002.12. This represents a 12.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 firm’s stock in a transaction that occurred 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 sale, the insider owned 61,525 shares of the company’s stock, valued at $12,305,000. This trade represents a 8.06% 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 a total of 29,053 shares of company stock worth $5,610,165 in the last quarter. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Hedge funds have recently added to or reduced their stakes in the company. Handelsbanken Fonder AB lifted its stake in Zscaler by 89.6% during the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock worth $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Zscaler by 6.6% in the 2nd quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock valued at $27,284,000 after purchasing an additional 11,941 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock valued at $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab acquired a new position in shares of Zscaler during the 2nd quarter worth $11,232,000. Finally, Amundi raised its holdings in shares of Zscaler by 12.8% during 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 in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Key Headlines 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.