JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Zscaler (NASDAQ:ZS) Stock

Zscaler (NASDAQ:ZS) had its price objective increased by equities researchers at JPMorgan Chase & Co. from $215.00 to $245.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective would suggest a potential upside of 15.46% from the company’s current price.

ZS has been the topic of several other research reports. Wolfe Research restated an “outperform” rating and set a $150.00 price objective on shares of Zscaler in a report on Thursday, June 11th. Jefferies Financial Group reiterated a “buy” rating and issued a $250.00 target price on shares of Zscaler in a research note on Wednesday. Morgan Stanley upped their price target on shares of Zscaler from $165.00 to $185.00 and gave the company an “equal weight” rating in a research note on Wednesday. Stephens raised their price target on shares of Zscaler from $225.00 to $265.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Robert W. Baird lifted their price objective on shares of Zscaler from $230.00 to $285.00 and gave the stock an “outperform” rating in a research note on Wednesday. Thirty-four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $235.15.

Zscaler Stock Down 0.0%

ZS stock traded down $0.06 on Wednesday, hitting $212.19. 1,145,896 shares of the company’s stock were exchanged, compared to its average volume of 3,360,074. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a 50 day moving average price of $181.94 and a two-hundred day moving average price of $155.82. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.70 and a current ratio of 1.70. The stock has a market cap of $34.60 billion, a P/E ratio of -542.27, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94.

Zscaler (NASDAQ:ZS) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. During the same period in the prior year, the company posted $0.89 EPS. The firm’s quarterly revenue was up 24.9% compared to the same quarter last year. 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 research analysts expect that Zscaler will post 0.7 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 519 shares of the firm’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $197.28, for a total transaction of $102,388.32. Following the completion of the transaction, the chief financial officer owned 42,768 shares of the company’s stock, valued at $8,437,271.04. This trade represents a 1.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 5,394 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $200.00, for a total transaction of $1,078,800.00. Following the transaction, the insider owned 61,525 shares of the company’s stock, valued at $12,305,000. This represents a 8.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 29,053 shares of company stock worth $5,610,165. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of ZS. Parkside Financial Bank & Trust lifted its holdings in Zscaler by 18.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock worth $59,000 after buying an additional 66 shares during the last quarter. Versant Capital Management Inc increased its holdings in shares of Zscaler by 45.6% in the 3rd quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock valued at $46,000 after acquiring an additional 72 shares during the last quarter. Koshinski Asset Management Inc. raised its position in shares of Zscaler by 2.7% during the 1st quarter. Koshinski Asset Management Inc. now owns 3,036 shares of the company’s stock worth $426,000 after acquiring an additional 79 shares in the last quarter. J.W. Cole Advisors Inc. raised its position in shares of Zscaler by 2.0% during the 4th quarter. J.W. Cole Advisors Inc. now owns 4,106 shares of the company’s stock worth $908,000 after acquiring an additional 80 shares in the last quarter. Finally, CX Institutional lifted its stake in Zscaler by 15.9% during the third quarter. CX Institutional now owns 611 shares of the company’s stock worth $122,000 after purchasing an additional 84 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Zscaler News

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.