Zscaler (NASDAQ:ZS) Given Outperform Rating at Royal Bank Of Canada

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

ZS has been the topic of several other reports. Canaccord Genuity Group set a $250.00 target price on shares of Zscaler in a research report on Wednesday. Sanford C. Bernstein increased their price target on shares of Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a report on Thursday, September 17th. Roth Capital reaffirmed a “neutral” rating and issued a $170.00 target price on shares of Zscaler in a research note on Saturday, September 5th. Rosenblatt Securities set a $250.00 target price on shares of Zscaler in a research note on Wednesday. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $220.00 price target on shares of Zscaler in a research note on Wednesday, September 2nd. Thirty-four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $234.40.

Zscaler Stock Down 0.6%

ZS traded down $1.20 during trading hours on Wednesday, hitting $211.05. 949,192 shares of the company’s stock were exchanged, compared to its average volume of 3,358,737. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The stock’s 50-day moving average is $181.94 and its two-hundred day moving average is $155.82. The stock has a market cap of $34.41 billion, a price-to-earnings ratio of -540.14, a PEG ratio of 21.03 and a beta of 0.94. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating 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%. The company’s revenue was up 24.9% on a year-over-year basis. During the same period in the prior year, the firm 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. Sell-side analysts predict that Zscaler will post 0.7 earnings per share for the current fiscal year.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 5,394 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the transaction, the insider directly owned 61,525 shares in the company, valued at approximately $12,305,000. The trade was a 8.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 177 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $192.01, for a total transaction of $33,985.77. Following the sale, the director directly owned 4,030 shares in the company, valued at $773,800.30. The trade was a 4.21% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 29,053 shares of company stock valued at $5,610,165. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in ZS. BlackRock Inc. acquired a new stake in shares of Zscaler in the second quarter valued at $1,396,028,000. First Trust Advisors LP increased its stake in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after buying an additional 935,781 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Zscaler in the second quarter valued at $102,271,000. Pictet Asset Management Holding SA increased its stake in shares of Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after buying an additional 661,413 shares in the last quarter. Finally, Legal & General Group Plc acquired a new stake in shares of Zscaler in the second quarter valued at $89,740,000. 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: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
• Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
• Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
• Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
• Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

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.