In the latest quarter, 28 analysts provided ratings for Zscaler ZS, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 12 | 10 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 1 | 0 | 0 |
| 1M Ago | 2 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 1 | 0 | 0 | 0 |
| 3M Ago | 9 | 8 | 5 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $215.32, a high estimate of $275.00, and a low estimate of $170.00. This upward trend is evident, with the current average reflecting a 11.47% increase from the previous average price target of $193.16.
Understanding Analyst Ratings: A Comprehensive Breakdown
A comprehensive examination of how financial experts perceive Zscaler is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Trevor Walsh | JMP Securities | Raises | Market Outperform | $270.00 | $225.00 |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $185.00 | - |
| Ki Bin Kim | Truist Securities | Raises | Buy | $230.00 | $205.00 |
| Fatima Boolani | Citigroup | Raises | Buy | $265.00 | $235.00 |
| Shyam Patil | Susquehanna | Announces | Positive | $275.00 | - |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $245.00 | $225.00 |
| Peter Levine | Evercore ISI Group | Raises | Outperform | $215.00 | $200.00 |
| Joel Fishbein | Truist Securities | Maintains | Buy | $205.00 | - |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $225.00 | - |
| Adam Borg | Stifel | Maintains | Buy | $205.00 | - |
| Rob Owens | Piper Sandler | Raises | Overweight | $220.00 | $190.00 |
| Matthew Hedberg | RBC Capital | Maintains | Outperform | $220.00 | - |
| Brian Colley | Stephens & Co. | Raises | Overweight | $225.00 | $200.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $200.00 | $195.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $210.00 | $185.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Raises | Neutral | $185.00 | $170.00 |
| Shaul Eyal | TD Cowen | Raises | Outperform | $215.00 | $195.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Equal-Weight | $180.00 | $170.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $225.00 | - |
| Alex Henderson | Needham | Raises | Strong Buy | $225.00 | $210.00 |
| Alex Henderson | Needham | Maintains | Strong Buy | $210.00 | - |
| Gray Powell | BTIG | Raises | Buy | $229.00 | $191.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Equal-Weight | $170.00 | $155.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Maintains | Neutral | $170.00 | - |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $225.00 | $185.00 |
| Brian Essex | JP Morgan | Raises | Neutral | $190.00 | $174.00 |
| Adam Borg | Stifel | Raises | Buy | $205.00 | $185.00 |
| Joel Fishbein | Truist Securities | Raises | Buy | $205.00 | $175.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zscaler. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Zscaler compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Zscaler's stock. This examination reveals shifts in analysts' expectations over time.
For valuable insights into Zscaler's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Zscaler analyst ratings.
Delving into Zscaler's Background
Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.
Zscaler's Financial Performance
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Zscaler's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 39.7%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Zscaler's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -6.74%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Zscaler's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.37%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.92%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 1.51, Zscaler adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: Simplified
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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