Zscaler (NASDAQ:ZS) Stock Price Expected to Rise, Wedbush Analyst Says

Zscaler (NASDAQ:ZS) had its price target raised by analysts at Wedbush from $215.00 to $240.00 in a report released on Wednesday, Benzinga reports. The firm currently has an “outperform” rating on the stock. Wedbush’s target price indicates a potential upside of 13.07% from the stock’s current price.

A number of other research analysts also recently weighed in on ZS. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 target price on shares of Zscaler in a report on Friday, September 4th. Robert W. Baird boosted their price target on Zscaler from $230.00 to $285.00 and gave the company an “outperform” rating in a research note on Wednesday. Jefferies Financial Group reaffirmed a “buy” rating and set a $220.00 price target on shares of Zscaler in a research report on Wednesday, September 2nd. Barclays boosted their price target on Zscaler from $200.00 to $220.00 and gave the company an “overweight” rating in a report on Tuesday, September 29th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Zscaler in a research report on Friday, September 4th. Thirty-four investment 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. According to MarketBeat, Zscaler has a consensus rating of “Moderate Buy” and an average target price of $225.53.

Zscaler Price Performance

ZS opened at $212.25 on Wednesday. The firm has a market cap of $34.61 billion, a PE ratio of -544.23, a P/E/G ratio of 21.03 and a beta of 0.94. The stock has a 50-day moving average price of $181.94 and a 200-day moving average price of $155.82. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. The business had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The company’s quarterly revenue was up 24.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.89 EPS. 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 Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 5,957 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the sale, the chief financial officer directly owned 43,287 shares of the company’s stock, valued at $8,344,002.12. This represents a 12.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,075,215.28. Following the transaction, the insider owned 43,553 shares of the company’s stock, valued at approximately $8,395,276.28. The trade was a 11.35% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 29,053 shares of company stock worth $5,610,165 in the last 90 days. 17.20% of the stock is currently owned by insiders.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently made changes to their positions in the company. Burkett Financial Services LLC purchased a new position in shares of Zscaler in the 3rd quarter worth approximately $27,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler during the fourth quarter valued at approximately $30,000. Reflection Asset Management acquired a new stake in Zscaler in the fourth quarter valued at approximately $40,000. POM Investment Strategies LLC boosted its stake in Zscaler by 92.9% in the second quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after acquiring an additional 105 shares in the last quarter. Finally, Versant Capital Management Inc grew its holdings in Zscaler by 45.6% in the third quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock worth $46,000 after purchasing an additional 72 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Fiscal 2027 guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, removing a key uncertainty for investors. Management’s guidance includes FY27 EPS of approximately $4.86–$4.90 and Q1 EPS of $1.15–$1.16. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
• Positive Sentiment: AI is strengthening demand: Management said enterprises need stronger zero-trust defenses as AI agents create new attack surfaces and cyber risks. Investors viewed this as a potentially significant growth tailwind for Zscaler’s cloud security platform. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Analyst target raised: Stifel increased its price target, citing Zscaler’s prospects in AI cybersecurity. The target revision adds to bullish sentiment surrounding the company’s growth outlook. Zscaler: Stifel hikes target on AI cybersecurity prospects
• Positive Sentiment: IBM and Red Hat collaboration: Zscaler is working with IBM and Red Hat on protection for private applications during the period between vulnerability disclosure and patch deployment, expanding its enterprise security ecosystem. Zscaler Collaborates with IBM and Red Hat
• Neutral Sentiment: One analyst retained a Buy rating but lowered conviction from an earlier stronger stance. The analyst cited roughly 25% revenue growth, improving profitability, a net-cash balance sheet and a long-term $10 billion ARR target, while highlighting valuation and execution expectations. Zscaler Analyst Rating
• Negative Sentiment: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were provided, but the announcement creates a modest headline and litigation overhang. Pomerantz Investor Alert

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.