Zscaler’s (ZS) “Buy” Rating Reiterated at Truist Financial

Truist Financial reaffirmed their buy rating on shares of Zscaler (NASDAQ:ZS) in a research note released on Wednesday morning,Benzinga reports. The firm currently has a $250.00 target price on the stock, up from their prior target price of $200.00.

Other equities research analysts also recently issued reports about the stock. Morgan Stanley lifted 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. Royal Bank Of Canada reissued an “outperform” rating and set a $236.00 price objective on shares of Zscaler in a research report on Wednesday. Rosenblatt Securities set a $250.00 target price on Zscaler in a research note on Wednesday. Canaccord Genuity Group raised their target price on Zscaler from $210.00 to $250.00 and gave the company a “buy” rating in a research note on Wednesday. Finally, Stephens boosted their target price on Zscaler from $225.00 to $265.00 and gave the company an “overweight” rating in a research report on Wednesday. Thirty-five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and a consensus target price of $239.41.

Zscaler Stock Performance

Shares of ZS stock opened at $233.73 on Wednesday. The firm has a 50 day moving average of $186.15 and a 200-day moving average of $157.22. The company has a market cap of $38.11 billion, a price-to-earnings ratio of -599.31, a price-to-earnings-growth ratio of 20.84 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 has a 52 week low of $114.63 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The company had revenue of $898.19 million for the quarter, compared to the consensus estimate of $876.96 million. During the same quarter in the previous year, the company earned $0.89 EPS. Zscaler’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. On average, equities analysts forecast that Zscaler will post 0.69 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,852 shares of the business’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total transaction of $549,751.52. Following the completion of the sale, the chief executive officer directly owned 340,186 shares of the company’s stock, valued at $65,574,253.36. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 5,578 shares of the company’s stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total transaction of $1,075,215.28. Following the completion of the sale, the insider owned 43,553 shares in the company, valued at $8,395,276.28. This represents a 11.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 29,053 shares of company stock worth $5,610,165. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Riversedge Advisors LLC purchased a new stake in shares of Zscaler in the third quarter worth approximately $275,000. Wedmont Private Capital purchased a new position in shares of Zscaler during the third quarter valued at approximately $246,000. GAMMA Investing LLC boosted its position in shares of Zscaler by 13.9% during the third quarter. GAMMA Investing LLC now owns 805 shares of the company’s stock valued at $161,000 after buying an additional 98 shares during the last quarter. Farther Finance Advisors LLC grew its holdings in Zscaler by 79.8% during the third quarter. Farther Finance Advisors LLC now owns 3,691 shares of the company’s stock worth $736,000 after buying an additional 1,638 shares in the last quarter. Finally, Valeo Financial Advisors LLC bought a new stake in Zscaler during the third quarter worth $308,000. 46.45% of the stock is owned by institutional investors.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reaffirmed its fiscal 2027 outlook, including quarterly revenue of approximately $935 million–$939 million and full-year revenue of about $3.91 billion–$3.94 billion. Maintaining guidance appears to have eased concerns about a potential slowdown in cloud-security spending. Zscaler Is Up After Reaffirming 2027 Outlook and Expanding AI Security Partnership
• Positive Sentiment: The company announced a security collaboration with IBM and Red Hat to help protect private applications during the period between vulnerability disclosure and software patching. The partnership reinforces Zscaler’s positioning in AI-enabled, zero-trust security. Zscaler Jumps on Reaffirmed Revenue Outlook and IBM Security Pact
• Positive Sentiment: Zscaler outlined ambitious long-term recurring-revenue goals, including more than $8 billion of organic annual recurring revenue by fiscal 2031. Investors viewed the targets as evidence of substantial multi-year growth potential. Zscaler Expects More Than $8 Billion in Organic ARR by FY31
• Positive Sentiment: Analyst sentiment improved, with Citizens JMP raising its price target to $265 and UBS lifting its target to $250 while assigning a Buy rating. RBC, Truist, BNP Paribas Exane, Wedbush, and Cantor Fitzgerald also maintained positive views.
• Neutral Sentiment: Amerx initiated coverage with a Buy rating, adding another favorable opinion but with limited detail on valuation or financial estimates. Amerx Initiates Coverage of Zscaler at Buy
• Negative Sentiment: Some analysts cautioned that the long-term ARR ambitions may be difficult to achieve, while investors continue to weigh slowing growth, rising costs, and the need for stronger customer expansion. A law firm’s investigation of potential investor claims adds a secondary overhang, although no wrongdoing has been established. Jefferies Says Zscaler’s Long-Term ARR Target Looks Ambitious

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.