What Analysts Are Saying About Zscaler Stock

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23 analysts have expressed a variety of opinions on Zscaler ZS over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 12 4 0 0
Last 30D 0 0 1 0 0
1M Ago 0 1 0 0 0
2M Ago 1 0 0 0 0
3M Ago 6 11 3 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $228.48, a high estimate of $250.00, and a low estimate of $190.00. This current average has increased by 5.56% from the previous average price target of $216.45.

price target chart

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Zscaler by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Gregg Moskowitz Mizuho Raises Neutral $225.00 $210.00
Patrick Colville Scotiabank Raises Sector Outperform $225.00 $205.00
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

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Zscaler. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zscaler compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Zscaler's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Zscaler's market position. Stay informed and make data-driven decisions with the assistance of 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: 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 remarkable performance in 3 months is evident. As of 31 October, 2024, the company achieved an impressive revenue growth rate of 26.42%. This signifies 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 lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -1.92%, 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 -0.89%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.26% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Zscaler's debt-to-equity ratio is below the industry average at 0.87, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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

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