Zscaler’s (ZS) Buy Rating Reiterated at TD Cowen

TD Cowen reissued their buy rating on shares of Zscaler (NASDAQ:ZS) in a research report report published on Friday,Benzinga reports. They currently have a $200.00 price target on the stock.

ZS has been the subject of several other reports. Berenberg Bank set a $200.00 price target on Zscaler in a research report on Thursday, May 28th. Truist Financial set a $210.00 price objective on Zscaler in a research report on Wednesday, May 27th. Stifel Nicolaus raised their price objective on shares of Zscaler from $175.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, August 19th. Deutsche Bank Aktiengesellschaft cut their target price on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Finally, Royal Bank Of Canada boosted their target price on shares of Zscaler from $200.00 to $210.00 and gave the company an “outperform” rating in a research note on Friday. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $215.90.

Zscaler Price Performance

NASDAQ:ZS opened at $169.80 on Friday. The firm’s fifty day moving average is $161.26 and its two-hundred day moving average is $150.34. The firm has a market cap of $27.69 billion, a price-to-earnings ratio of -435.38, a PEG ratio of 99.94 and a beta of 0.95. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. Zscaler has a one year low of $114.63 and a one year high of $336.99.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to analyst estimates 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 revenue was up 24.9% on a year-over-year basis. During the same quarter last year, the business posted $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. Research analysts expect that Zscaler will post 0.13 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 Zscaler stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the sale, the insider owned 69,366 shares in the company, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their position. 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 sold a total of 16,772 shares of company stock worth $2,139,799 over the last 90 days. 17.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZS. Parkside Financial Bank & Trust lifted its stake in Zscaler by 18.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock valued at $59,000 after buying an additional 66 shares in the last quarter. Amundi raised its holdings in shares of Zscaler by 12.8% during the second quarter. Amundi now owns 1,137,837 shares of the company’s stock valued at $160,606,000 after acquiring an additional 129,563 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Zscaler during the second quarter valued at approximately $3,588,000. California State Teachers Retirement System raised its holdings in shares of Zscaler by 13,837.9% during the second quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock valued at $2,736,727,000 after acquiring an additional 19,249,679 shares during the last quarter. Finally, POM Investment Strategies LLC lifted its position in shares of Zscaler by 92.9% in the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after acquiring an additional 105 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.