Royal Bank Of Canada Reaffirms Outperform Rating for Zscaler (NASDAQ:ZS)

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reissued by analysts at Royal Bank Of Canada in a research note issued on Wednesday,Benzinga reports. They presently have a $200.00 target price on the stock. Royal Bank Of Canada’s target price indicates a potential upside of 56.25% from the stock’s current price.

Several other equities research analysts have also commented on ZS. Robert W. Baird cut their price objective on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. B. Riley Financial lowered their target price on shares of Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. JPMorgan Chase & Co. cut their price target on Zscaler from $250.00 to $205.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 27th. Morgan Stanley reduced their price objective on Zscaler from $155.00 to $145.00 and set an “equal weight” rating for the company in a research report on Wednesday, May 27th. Finally, Evercore set a $155.00 price objective on Zscaler and gave the company an “in-line” rating in a research note on Wednesday, May 27th. Thirty-three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $216.03.

Zscaler Stock Up 1.7%

ZS stock traded up $2.16 during midday trading on Wednesday, hitting $128.00. The stock had a trading volume of 666,730 shares, compared to its average volume of 3,569,907. The business has a 50-day moving average of $143.22 and a two-hundred day moving average of $180.32. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The firm has a market cap of $20.70 billion, a price-to-earnings ratio of -266.18, a price-to-earnings-growth ratio of 80.81 and a beta of 0.97. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99.

Zscaler (NASDAQ:ZS) last announced its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The firm had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The company’s quarterly revenue was up 25.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, equities research analysts forecast that Zscaler will post 0.11 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Robert Schlossman sold 2,263 shares of the company’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares in the company, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Adam Geller sold 2,094 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the transaction, the insider directly owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,130 shares of company stock valued at $1,892,487 over the last ninety days. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of institutional investors and hedge funds have recently made changes to their positions in ZS. Binnacle Investments Inc purchased a new stake in Zscaler during the third quarter valued at approximately $25,000. Picton Mahoney Asset Management purchased a new position in shares of Zscaler during the 3rd quarter worth $30,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler during the 4th quarter worth $29,000. University of Texas Texas AM Investment Management Co. bought a new stake in shares of Zscaler during the 4th quarter valued at $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in shares of Zscaler during the 4th quarter valued at $32,000. 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: Rosenblatt Securities reaffirmed its Buy rating and set a $200 price target on Zscaler, implying meaningful upside from current levels. Rosenblatt reaffirms Buy on Zscaler
• Positive Sentiment: Needham also reiterated a Buy rating with a $180 price target, reinforcing Wall Street confidence in Zscaler’s growth outlook. Needham reaffirms Buy on Zscaler
• Positive Sentiment: Zscaler unveiled major AI-security and zero-trust product expansions, including ZAgent Framework, AI Broker, Endpoint AI Security, and AI Access Graph, which positions the company as an early leader in securing agentic AI workloads. Zscaler Redefines Zero Trust SASE for the AI Era
• Positive Sentiment: The company expanded Project AI-Guardian with partners like AWS, Google Cloud, OpenAI, Databricks, and others, suggesting broader ecosystem adoption and more AI-related use cases for its platform. Zscaler Expands AI-Guardian Uniting Tech Giants to Secure Enterprise AI at Scale
• Neutral Sentiment: Management highlighted research showing cybercriminals are using AI to create more targeted phishing attacks, which supports the demand case for Zscaler’s security tools but does not directly change near-term financials. Zscaler Research Finds Cybercrime Economics Are Shifting as AI Trades Mass Volume for Lethal Precision
• Negative Sentiment: Investor concern remains elevated after reports of a stock crash and securities investigation/class-action activity, which can pressure sentiment even when fundamentals and product news are improving. Zscaler’s Stock Lost 31% in One Day. Now Securities Lawyers Are Circling.
• Negative Sentiment: Additional law-firm notices about a possible fraud/securities investigation add legal uncertainty and can weigh on the stock until clarified. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm

About Zscaler

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.