Cantor Fitzgerald Forecasts Strong Price Appreciation for Zscaler (NASDAQ:ZS) Stock

Zscaler (NASDAQ:ZS) had its target price hoisted by equities researchers at Cantor Fitzgerald from $225.00 to $275.00 in a note issued to investors on Wednesday, MarketBeat Ratings reports. The firm currently has an “overweight” rating on the stock. Cantor Fitzgerald’s price target would indicate a potential upside of 26.84% from the company’s previous close.

Several other equities analysts also recently weighed in on the company. TD Cowen reaffirmed a “buy” rating and issued a $200.00 target price on shares of Zscaler in a research report on Friday, September 4th. Guggenheim reissued a “buy” rating on shares of Zscaler in a research report on Friday, September 25th. Canaccord Genuity Group reissued a “buy” rating and issued a $210.00 price objective on shares of Zscaler in a research note on Friday, September 4th. Piper Sandler lifted their price objective on shares of Zscaler from $160.00 to $175.00 and gave the company a “neutral” rating in a report on Friday, September 4th. Finally, Mizuho upped their target price on shares of Zscaler from $210.00 to $220.00 and gave the stock an “outperform” rating in a research note on Friday, September 25th. Thirty-five equities 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 company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $238.07.

Zscaler Stock Up 1.5%

NASDAQ:ZS opened at $216.81 on Wednesday. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The stock’s fifty day moving average is $184.50 and its two-hundred day moving average is $156.69. The stock has a market capitalization of $35.35 billion, a price-to-earnings ratio of -555.92, a price-to-earnings-growth ratio of 22.25 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 (NASDAQ:ZS) last issued 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 business had revenue of $898.19 million during 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%.The company’s revenue was up 24.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.89 earnings per share. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Research analysts anticipate that Zscaler will post 0.7 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Jagtar Chaudhry sold 2,852 shares of the stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $192.76, for a total value of $549,751.52. Following the transaction, the chief executive officer owned 340,186 shares in the company, valued at approximately $65,574,253.36. This represents a 0.83% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 5,394 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $200.00, for a total value of $1,078,800.00. Following the sale, the insider owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. The trade was a 8.06% 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. In the last 90 days, insiders sold 29,053 shares of company stock valued at $5,610,165. 17.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Zscaler

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of Zscaler in the second quarter valued at approximately $1,396,028,000. First Trust Advisors LP increased its holdings in shares of Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after acquiring an additional 935,781 shares during the period. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Zscaler in the 2nd quarter valued at $102,271,000. Pictet Asset Management Holding SA raised its position in Zscaler by 52.5% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock valued at $269,285,000 after purchasing an additional 661,413 shares during the last quarter. Finally, Legal & General Group Plc acquired a new stake in Zscaler during the 2nd quarter worth $89,740,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: At its investor day, Zscaler reaffirmed its fiscal 2027 first-quarter and full-year guidance, helping ease concerns about recent go-to-market leadership changes. Management highlighted AI security, new customer entry points, cross-selling and an ambition to exceed $8 billion in organic annual recurring revenue by fiscal 2031. Zscaler Stock Jumps as AI Drives Demand for Zero Trust Platform
• Positive Sentiment: Wall Street largely responded favorably: UBS, Truist, JPMorgan, Needham, Cantor Fitzgerald, Baird, Wedbush and BNP Paribas Exane raised targets, with several maintaining buy or outperform ratings. Targets generally range from $236 to $285, implying additional upside from recent trading levels. Wall Street sees 29% upside for Zscaler
• Positive Sentiment: A new IBM and Red Hat partnership will combine Zscaler’s Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows, including attacks assisted by AI. The agreement could expand Zscaler’s enterprise reach and reinforce its AI-security growth narrative. Zscaler Unveils New Private App Security Partnership
• Neutral Sentiment: Analysts see strong long-term potential from AI security, broader product adoption and cross-selling, but Morgan Stanley maintained an equal-weight view and questioned whether client growth will accelerate enough to support the ambitious long-term targets.
• Negative Sentiment: Jefferies called Zscaler’s $10 billion fiscal 2031 ARR goal ambitious, while commentary on the stock’s 45% three-month rally cited slowing growth and rising costs as reasons investors may consider taking profits. BTIG retained a neutral rating, and Pomerantz LLP announced an investigation into potential investor claims, adding a legal headline risk. Jefferies on Zscaler’s long-term ARR target

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.