Zscaler (NASDAQ:ZS) Given New $320.00 Price Target at Berenberg Bank

Zscaler (NASDAQ:ZS) had its price target cut by Berenberg Bank from $390.00 to $320.00 in a research note issued to investors on Friday,MarketScreener reports. They currently have a buy rating on the stock.

A number of other brokerages have also weighed in on ZS. KeyCorp decreased their target price on Zscaler from $300.00 to $250.00 and set an “overweight” rating on the stock in a research note on Tuesday, February 17th. UBS Group lowered their price target on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a research report on Wednesday, November 26th. Scotiabank decreased their target price on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a report on Wednesday, November 26th. Needham & Company LLC decreased their target price on Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research report on Friday. Finally, Bank of America cut their price target on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and an average target price of $274.37.

Zscaler Price Performance

Shares of Zscaler stock traded down $20.37 during trading on Friday, reaching $146.99. 11,080,725 shares of the company’s stock were exchanged, compared to its average volume of 3,018,555. The firm’s 50-day moving average price is $198.92 and its 200 day moving average price is $255.20. The company has a market cap of $23.44 billion, a P/E ratio of -349.98, a PEG ratio of 341.17 and a beta of 1.02. Zscaler has a 1-year low of $140.56 and a 1-year high of $336.99. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period last year, the company posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts anticipate that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In related news, insider Robert Schlossman sold 2,349 shares of the company’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $546,823.71. Following the transaction, the insider directly owned 74,653 shares of the company’s stock, valued at $17,378,471.87. This represents a 3.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares in the company, valued at approximately $80,292,352.74. This represents a 0.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 19,350 shares of company stock valued at $4,471,509. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Binnacle Investments Inc acquired a new stake in shares of Zscaler in the 3rd quarter worth $25,000. Tradewinds Capital Management LLC grew its holdings in shares of Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC acquired a new stake in shares of Zscaler in the third quarter valued at $26,000. McIlrath & Eck LLC acquired a new position in shares of Zscaler during the third quarter worth about $29,000. Finally, Picton Mahoney Asset Management acquired a new stake in shares of Zscaler in the 3rd quarter valued at $30,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

Zscaler Company Profile

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.