What 21 Analyst Ratings Have To Say About Zscaler

Ratings for Zscaler ZS were provided by 21 analysts in the past three months, 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.

Analysts have recently evaluated Zscaler and provided 12-month price targets. The average target is $235.71, accompanied by a high estimate of $260.00 and a low estimate of $190.00. This upward trend is apparent, with the current average reflecting a 5.82% increase from the previous average price target of $222.74.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Zscaler. The following summary 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 | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Taz Koujalgi |Roth Capital |Announces |Neutral | $215.00|- | |Hamza Fodderwala |Morgan Stanley |Lowers |Equal-Weight | $200.00|$205.00 | |Catharine Trebnick |Rosenblatt |Maintains |Buy | $235.00|$235.00 | |Jonathan Ruykhaver |Cantor Fitzgerald |Raises |Overweight | $250.00|$220.00 | |Todd Weller |Stephens & Co. |Announces |Overweight | $255.00|- | |Joseph Gallo |Jefferies |Lowers |Buy | $240.00|$245.00 | |Tal Liani |B of A Securities |Raises |Buy | $240.00|$215.00 | |Roger Boyd |UBS |Raises |Buy | $260.00|$250.00 | |Patrick Colville |Scotiabank |Raises |Sector Outperform| $242.00|$225.00 | |Keith Bachman |BMO Capital |Raises |Outperform | $233.00|$222.00 | |Fatima Boolani |Citigroup |Raises |Buy | $240.00|$235.00 | |Matthew Hedberg |RBC Capital |Raises |Outperform | $250.00|$230.00 | |Daniel Ives |Wedbush |Raises |Outperform | $240.00|$230.00 | |Andrew Nowinski |Wells Fargo |Raises |Equal-Weight | $210.00|$190.00 | |Shrenik Kothari |Baird |Raises |Outperform | $250.00|$240.00 | |Brian Essex |JP Morgan |Raises |Overweight | $250.00|$240.00 | |Catharine Trebnick |Rosenblatt |Raises |Buy | $235.00|$190.00 | |Mike Cikos |Needham |Maintains |Buy | $240.00|$240.00 | |Catharine Trebnick |Rosenblatt |Maintains |Neutral | $190.00|$190.00 | |Saket Kalia |Barclays |Raises |Overweight | $250.00|$220.00 | |Gregg Moskowitz |Mizuho |Raises |Neutral | $225.00|$210.00 |

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Zscaler. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Zscaler compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Zscaler's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Zscaler's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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.

Unraveling the Financial Story of Zscaler

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Zscaler's revenue growth over a period of 3M has been noteworthy. As of 31 January, 2025, the company achieved a revenue growth rate of approximately 23.41%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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 -1.19%, 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 -0.51%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.16%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.77, Zscaler adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.