Zscaler (NASDAQ:ZS) Earns Buy Rating from Rosenblatt Securities

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by Rosenblatt Securities in a research report issued on Tuesday,Benzinga reports. They presently have a $280.00 price objective on the stock. Rosenblatt Securities’ target price would suggest a potential upside of 87.04% from the stock’s current price.

A number of other brokerages also recently issued reports on ZS. Stephens lowered their price target on Zscaler from $340.00 to $225.00 and set an “overweight” rating for the company in a research report on Monday. Robert W. Baird dropped their price target on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research note on Monday. JPMorgan Chase & Co. reduced their price objective on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research report on Friday. Citigroup dropped their target price on Zscaler from $350.00 to $305.00 and set a “buy” rating for the company in a research report on Tuesday, January 13th. Finally, Bank of America reduced their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and a consensus price target of $294.76.

Zscaler Price Performance

Shares of NASDAQ ZS traded up $6.42 during mid-day trading on Tuesday, hitting $149.70. 1,051,678 shares of the company’s stock traded hands, compared to its average volume of 2,229,526. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. Zscaler has a 1 year low of $141.56 and a 1 year high of $336.99. The company’s 50-day moving average is $204.99 and its two-hundred day moving average is $258.24. The company has a market capitalization of $23.87 billion, a P/E ratio of -571.71, a PEG ratio of 325.66 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.11. The company had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The firm’s revenue for the quarter was up 25.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.77 earnings per share. On average, equities analysts anticipate that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Activity at Zscaler

In related news, insider Robert Schlossman sold 2,349 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the completion of the transaction, the insider owned 74,653 shares in the company, valued at $17,378,471.87. The trade was a 3.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $226.72, for a total transaction of $148,048.16. Following the completion of the sale, the director owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 19,350 shares of company stock valued at $4,471,509 over the last 90 days. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. increased its position in shares of Zscaler by 3.2% during the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares during the period. Cox Capital Mgt LLC raised its stake in shares of Zscaler by 0.6% in the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after buying an additional 33 shares in the last quarter. Brookstone Capital Management raised its stake in shares of Zscaler by 3.7% in the 3rd quarter. Brookstone Capital Management now owns 936 shares of the company’s stock valued at $280,000 after buying an additional 33 shares in the last quarter. Wedbush Securities Inc. boosted its position in shares of Zscaler by 0.7% during the 3rd quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, Goldstream Capital Management Ltd raised its position in Zscaler by 0.3% in the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock worth $3,731,000 after purchasing an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, strengthening Zscaler’s local footprint, talent pipeline and go‑to‑market in a large growth market — strategic partnership that supports long-term revenue expansion. Bharti Airtel partners with Zscaler
• Positive Sentiment: A bullish deep-dive argues Zscaler remains a compelling buy due to strong gross retention, expanding AI/agent security capabilities and a data moat — a constructive fundamental view that could support medium/long-term multiple expansion if execution continues. Zscaler Scales Zero Trust And AI Agent Security
• Neutral Sentiment: BTIG cut its price target from $365 to $209 but kept a “buy” rating — a meaningful reduction in upside expectations even as the analyst retains conviction. BTIG price target change
• Neutral Sentiment: Robert W. Baird trimmed its target (to $300) and JPMorgan also lowered its target (to $267) while maintaining positive ratings — analysts are moderating targets amid sector multiple pressure rather than cutting on company fundamentals. Baird PT cut JPMorgan PT cut
• Neutral Sentiment: Analysts previewing Zscaler’s upcoming Q2 results expect ~23% revenue growth and are focused on AI security demand — earnings will be the next major catalyst to confirm growth vs. margin tradeoffs. Q2 earnings preview
• Negative Sentiment: A sector rout followed Anthropic’s launch of a new AI security tool that can scan code for vulnerabilities, prompting investors to worry AI could displace some vendor workflows — this sparked broad selling across cybersecurity names, weighing on ZS. Cybersecurity stocks drop
• Negative Sentiment: White House tariff plans (reporting of higher global tariffs) were cited as a near‑term negative catalyst pushing shares lower, adding macro trade‑policy risk unrelated to Zscaler’s fundamentals. Why Zscaler Stock Is Falling Today
• Negative Sentiment: Mizuho and others have trimmed price targets in recent days (e.g., Mizuho to $265), reflecting industry multiple compression — analyst downgrades/cuts can sustain selling pressure until earnings or clearer AI impact evidence. Mizuho PT cut

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.