Berenberg Bank Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price objective dropped by investment analysts at Berenberg Bank from $390.00 to $320.00 in a research note issued to investors on Friday,MarketScreener reports. The brokerage presently has a “buy” rating on the stock. Berenberg Bank’s target price points to a potential upside of 117.70% from the stock’s current price.

Other equities analysts have also issued reports about the stock. JPMorgan Chase & Co. cut their price objective on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Morgan Stanley lowered their target price on shares of Zscaler from $305.00 to $200.00 and set an “overweight” rating for the company in a report on Friday. Scotiabank dropped their target price on shares of Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research report on Wednesday, November 26th. Citizens Jmp reduced their price target on Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a research report on Friday. Finally, Loop Capital set a $320.00 price objective on Zscaler in a research note on Thursday, December 11th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $274.37.

Zscaler Trading Down 12.2%

Shares of ZS opened at $146.99 on Friday. The stock’s fifty day simple moving average is $198.92 and its 200-day simple moving average is $255.06. The firm has a market capitalization of $23.44 billion, a PE ratio of -349.98, a price-to-earnings-growth ratio of 299.64 and a beta of 1.02. Zscaler has a 12-month low of $140.56 and a 12-month high of $336.99. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86.

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 the consensus estimate of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same period in the previous year, the business posted $0.78 EPS. The company’s quarterly revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In other Zscaler news, insider Robert Schlossman sold 3,084 shares of the business’s stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $711,848.88. Following the completion of the transaction, the insider directly owned 77,002 shares of the company’s stock, valued at approximately $17,773,601.64. The trade was a 3.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This trade represents a 0.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 19,350 shares of company stock valued at $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Virtu Financial LLC acquired a new position in shares of Zscaler in the fourth quarter valued at approximately $2,305,000. Sunbelt Securities Inc. lifted its position in Zscaler by 92.9% in the 4th quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock valued at $845,000 after acquiring an additional 1,808 shares in the last quarter. Kovitz Investment Group Partners LLC boosted its stake in Zscaler by 618.0% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock worth $1,526,000 after purchasing an additional 5,840 shares during the period. Mcguire Capital Advisors Inc. bought a new position in Zscaler during the 4th quarter worth about $32,000. Finally, Invesco Ltd. increased its holdings in Zscaler by 13.8% during the 4th quarter. Invesco Ltd. now owns 1,469,657 shares of the company’s stock worth $330,555,000 after purchasing an additional 178,692 shares in the last quarter. Institutional investors own 46.45% of the company’s stock.

Key Zscaler News

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.