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

Zscaler (NASDAQ:ZS) had its target price increased by JPMorgan Chase & Co. from $215.00 to $245.00 in a report issued on Wednesday morning,Benzinga reports. JPMorgan Chase & Co. currently has an overweight rating on the stock.

A number of other equities analysts also recently weighed in on the company. BMO Capital Markets boosted their price target on Zscaler from $178.00 to $200.00 and gave the stock an “outperform” rating in a research report on Friday, September 4th. Robert W. Baird raised their price objective on Zscaler from $230.00 to $285.00 and gave the company an “outperform” rating in a research report on Wednesday. Stifel Nicolaus lifted their target price on Zscaler from $200.00 to $235.00 and gave the stock a “buy” rating in a research note on Wednesday. Barclays lifted their target price on Zscaler from $220.00 to $225.00 and gave the stock an “overweight” rating in a research note on Wednesday. Finally, Canaccord Genuity Group boosted their target price on Zscaler from $210.00 to $250.00 and gave the stock a “buy” rating in a report on Wednesday. Thirty-five investment 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’s stock. According to data from MarketBeat.com, Zscaler presently has an average rating of “Moderate Buy” and a consensus price target of $239.41.

Zscaler Stock Performance

Shares of ZS opened at $233.73 on Wednesday. The firm has a 50-day moving average of $186.15 and a 200-day moving average of $157.22. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company has a market cap of $38.11 billion, a PE ratio of -599.31, a price-to-earnings-growth ratio of 20.84 and a beta of 0.94. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data 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 company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. Zscaler’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.89 EPS. 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, equities analysts forecast that Zscaler will post 0.69 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Adam Geller sold 661 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 $132,200.00. Following the transaction, the insider directly owned 38,308 shares of the company’s stock, valued at $7,661,600. This represents a 1.70% decrease in their position. The sale was disclosed in a filing 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 value of $102,388.32. Following the transaction, the chief financial officer owned 42,768 shares in the company, valued at $8,437,271.04. The trade was a 1.20% 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. Insiders sold a total of 29,053 shares of company stock worth $5,610,165 over the last three months. 17.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Zscaler in the 2nd quarter valued at approximately $1,396,028,000. First Trust Advisors LP lifted its holdings in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after acquiring an additional 935,781 shares during the period. Pictet Asset Management Holding SA boosted its position in shares of Zscaler by 52.5% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after acquiring an additional 661,413 shares in the last quarter. Amundi boosted its position 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 acquiring an additional 129,563 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of Zscaler by 23.5% during the 2nd quarter. Wellington Management Group LLP now owns 1,103,212 shares of the company’s stock worth $155,718,000 after acquiring an additional 209,711 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

About Zscaler

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.