23 Analysts Assess Zscaler: What You Need To Know

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Providing a diverse range of perspectives from bullish to bearish, 23 analysts have published ratings on Zscaler ZS in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 8 12 3 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 7 11 3 0 0
3M Ago 0 1 0 0 0

Analysts have recently evaluated Zscaler and provided 12-month price targets. The average target is $230.87, accompanied by a high estimate of $270.00 and a low estimate of $190.00. This upward trend is evident, with the current average reflecting a 5.01% increase from the previous average price target of $219.86.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Zscaler among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Mike Cikos Needham Maintains Buy $240.00 $240.00
Andrew Nowinski Wells Fargo Raises Equal-Weight $190.00 $180.00
Fatima Boolani Citigroup Raises Buy $235.00 $230.00
Rob Owens Piper Sandler Raises Overweight $235.00 $215.00
Yun Kim Loop Capital Lowers Hold $195.00 $200.00
Keith Bachman BMO Capital Raises Outperform $222.00 $197.00
Matthew Hedberg RBC Capital Maintains Outperform $230.00 $230.00
Ittai Kidron Oppenheimer Raises Outperform $250.00 $230.00
Eric Heath Keybanc Raises Overweight $250.00 $245.00
Patrick Colville Scotiabank Raises Sector Outperform $205.00 $195.00
Trevor Walsh JMP Securities Lowers Market Outperform $240.00 $270.00
Shyam Patil Susquehanna Raises Positive $225.00 $210.00
Hamza Fodderwala Morgan Stanley Lowers Equal-Weight $205.00 $215.00
Patrick Colville Deutsche Bank Raises Buy $225.00 $200.00
Kingsley Crane Canaccord Genuity Raises Buy $230.00 $220.00
Mike Cikos Needham Announces Buy $240.00 -
Brian Essex JP Morgan Raises Overweight $240.00 $220.00
Gray Powell BTIG Raises Buy $238.00 $205.00
Joseph Gallo Jefferies Raises Buy $245.00 $225.00
Eric Heath Keybanc Raises Overweight $245.00 $220.00
Saket Kalia Barclays Raises Overweight $220.00 $200.00
Adam Borg Stifel Raises Buy $235.00 $220.00
Trevor Walsh JMP Securities Maintains Market Outperform $270.00 $270.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Zscaler. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Zscaler's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Zscaler analyst ratings.

Discovering Zscaler: A Closer Look

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.

Breaking Down Zscaler's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Zscaler displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 26.42%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -1.92%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -0.89%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Zscaler's ROA excels beyond industry benchmarks, reaching -0.26%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.87.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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