BMO Capital Markets Lowers Zscaler (NASDAQ:ZS) Price Target to $210.00

Zscaler (NASDAQ:ZS) had its price target dropped by equities researchers at BMO Capital Markets from $315.00 to $210.00 in a research report issued to clients and investors on Friday, Marketbeat Ratings reports. The brokerage presently has an “outperform” rating on the stock. BMO Capital Markets’ price target suggests a potential upside of 42.87% from the stock’s current price.

Several other equities research analysts have also recently commented on ZS. Stifel Nicolaus dropped their price objective on Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Berenberg Bank lowered their target price on shares of Zscaler from $400.00 to $390.00 and set a “buy” rating on the stock in a research note on Friday, November 28th. Scotiabank reduced their price target on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research note on Wednesday, November 26th. Rosenblatt Securities reissued a “buy” rating and set a $280.00 price objective on shares of Zscaler in a report on Tuesday, February 24th. Finally, Macquarie Infrastructure started coverage on shares of Zscaler in a report on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and an average price target of $274.37.

Zscaler Trading Down 12.2%

Shares of NASDAQ ZS opened at $146.99 on Friday. The firm’s 50 day moving average price is $198.92 and its 200-day moving average price is $255.06. Zscaler has a 52-week low of $140.56 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. The company has a market cap of $23.44 billion, a PE ratio of -349.98, a P/E/G ratio of 299.64 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The company had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm’s revenue for the quarter was up 25.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities research analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the sale, the executive vice president owned 70,394 shares in the company, valued at approximately $16,248,343.08. This represents a 4.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Adam Geller sold 2,060 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $475,489.20. Following the transaction, the insider directly owned 52,148 shares of the company’s stock, valued at approximately $12,036,801.36. This trade represents a 3.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 19,350 shares of company stock valued at $4,471,509 in the last three months. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zscaler

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Binnacle Investments Inc purchased a new position in Zscaler during the third quarter valued at $25,000. Tradewinds Capital Management LLC raised its position in shares of Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after purchasing an additional 51 shares during the last quarter. Root Financial Partners LLC purchased a new position in Zscaler in the 3rd quarter valued at about $26,000. McIlrath & Eck LLC acquired a new stake in Zscaler in the 3rd quarter worth about $29,000. Finally, Picton Mahoney Asset Management acquired a new stake in Zscaler in the 3rd quarter worth about $30,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.