Zscaler (NASDAQ:ZS) Stock Rating Reaffirmed as “Outperform” by BNP Paribas Exane

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reaffirmed by equities researchers at BNP Paribas Exane in a note issued to investors on Wednesday, Benzinga reports. They currently have a $250.00 target price on the stock, up from their previous target price of $230.00. BNP Paribas Exane’s price target would suggest a potential upside of 17.41% from the stock’s current price.

Other equities research analysts have also issued reports about the stock. Morgan Stanley boosted their price objective on shares of Zscaler from $165.00 to $185.00 and gave the stock an “equal weight” rating in a report on Wednesday. Wedbush increased their target price on shares of Zscaler from $215.00 to $240.00 and gave the company an “outperform” rating in a report on Wednesday. Canaccord Genuity Group set a $250.00 target price on shares of Zscaler and gave the stock a “buy” rating in a research report on Wednesday. Sanford C. Bernstein boosted their price target on shares of Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. Finally, Guggenheim upped their price target on shares of Zscaler from $214.00 to $254.00 and gave the company a “buy” rating in a research report on Wednesday. Thirty-five investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $236.49.

Zscaler Price Performance

Shares of ZS traded up $0.68 during midday trading on Wednesday, reaching $212.93. The stock had a trading volume of 1,490,680 shares, compared to its average volume of 3,361,926. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $34.72 billion, a price-to-earnings ratio of -545.86, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. The company’s 50-day moving average is $181.94 and its 200 day moving average is $155.82. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99.

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

Insider Activity at Zscaler

In other Zscaler news, insider Adam Geller sold 661 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $200.00, for a total transaction of $132,200.00. Following the completion of the sale, the insider owned 38,308 shares of the company’s stock, valued at $7,661,600. This represents a 1.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the firm’s stock in a transaction on Friday, September 25th. The stock was sold at an average price of $197.28, for a total transaction of $102,388.32. Following the completion of the sale, the chief financial officer directly owned 42,768 shares in the company, valued at approximately $8,437,271.04. This trade represents a 1.20% 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. Insiders sold a total of 29,053 shares of company stock worth $5,610,165 over the last ninety days. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Handelsbanken Fonder AB raised its holdings in shares of Zscaler by 89.6% during the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock valued at $8,601,000 after purchasing an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in Zscaler by 6.6% in the second quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock worth $27,284,000 after purchasing an additional 11,941 shares during the last quarter. Bank of America Corp DE boosted its holdings in Zscaler by 44.3% in the first quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Danica Pension Livsforsikringsaktieselskab purchased a new position in shares of Zscaler in the 2nd quarter worth $11,232,000. Finally, Amundi grew its holdings in shares of Zscaler by 12.8% in the second quarter. Amundi now owns 1,137,837 shares of the company’s stock worth $160,606,000 after acquiring an additional 129,563 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Broad analyst upgrades: Cantor Fitzgerald raised its target to $275, Robert W. Baird to $285, Needham to $255, Truist to $250, JPMorgan to $245, Wedbush to $240 and RBC to $236. Most firms maintained bullish ratings, citing Zscaler’s growth opportunity and AI-security demand. Wall Street sees 29% upside for Zscaler as eight firms raise price targets
• Positive Sentiment: AI and cross-selling provide growth catalysts: Analysts said Zscaler’s expanded disclosures, new customer entry points, sales investments and AI-security offerings could support its long-term recurring-revenue ambitions, including an ARR target of roughly $8 billion or more by fiscal 2031. Zscaler on Track as AI, Sales Push Expand Growth
• Positive Sentiment: Guidance reaffirmed: Management maintained its first-quarter and full-year fiscal 2027 outlook, reducing concerns about near-term execution and reinforcing its positioning as a cybersecurity platform for the AI era. Zscaler Hosts 2026 Investor Day
• Positive Sentiment: IBM and Red Hat partnership: Zscaler will combine its Autonomous Application Shield with IBM and Red Hat tools to protect private applications from active and AI-powered exploits, potentially expanding enterprise adoption. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Analyst disagreement remains: Morgan Stanley raised its target to $185 but retained an equal-weight rating, while BTIG reaffirmed neutral. This highlights valuation and execution concerns despite the broader bullish consensus.
• Negative Sentiment: Legal overhang: Pomerantz LLP is investigating potential claims on behalf of Zscaler investors. No allegations have been proven, but the investigation creates a reputational and headline risk. Pomerantz Investor Alert

Zscaler Company Profile

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.