Across the recent three months, 27 analysts have shared their insights on Zscaler ZS, expressing a variety of opinions spanning from bullish to bearish.
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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 12 | 10 | 5 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 1 | 0 | 0 | 0 |
| 2M Ago | 9 | 8 | 5 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Zscaler, presenting an average target of $214.59, a high estimate of $275.00, and a low estimate of $170.00. This current average reflects an increase of 13.28% from the previous average price target of $189.44.
Understanding Analyst Ratings: A Comprehensive Breakdown
A clear picture of Zscaler's perception among financial experts is painted with a thorough analysis 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 |
|---|---|---|---|---|---|
| Fatima Boolani | Citigroup | Raises | Buy | $265.00 | $235.00 |
| Shyam Patil | Susquehanna | Announces | Positive | $275.00 | - |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $245.00 | $225.00 |
| Peter Levine | Evercore ISI Group | Raises | Outperform | $215.00 | $200.00 |
| Joel Fishbein | Truist Securities | Maintains | Buy | $205.00 | - |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $225.00 | - |
| Adam Borg | Stifel | Maintains | Buy | $205.00 | - |
| Rob Owens | Piper Sandler | Raises | Overweight | $220.00 | $190.00 |
| Matthew Hedberg | RBC Capital | Maintains | Outperform | $220.00 | - |
| Brian Colley | Stephens & Co. | Raises | Overweight | $225.00 | $200.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $200.00 | $195.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $210.00 | $185.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Raises | Neutral | $185.00 | $170.00 |
| Shaul Eyal | TD Cowen | Raises | Outperform | $215.00 | $195.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Equal-Weight | $180.00 | $170.00 |
| Catharine Trebnick | Rosenblatt | Maintains | Buy | $225.00 | - |
| Alex Henderson | Needham | Raises | Strong Buy | $225.00 | $210.00 |
| Alex Henderson | Needham | Maintains | Strong Buy | $210.00 | - |
| Gray Powell | BTIG | Raises | Buy | $229.00 | $191.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Equal-Weight | $170.00 | $155.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Maintains | Neutral | $170.00 | - |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $225.00 | $185.00 |
| Brian Essex | JP Morgan | Raises | Neutral | $190.00 | $174.00 |
| Adam Borg | Stifel | Raises | Buy | $205.00 | $185.00 |
| Joel Fishbein | Truist Securities | Raises | Buy | $205.00 | $175.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $225.00 | - |
| Joseph Gallo | Jefferies | Raises | Buy | $225.00 | $170.00 |
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 predict movements in price targets, offering estimates for Zscaler's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Zscaler's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Zscaler analyst ratings.
Get to Know Zscaler Better
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.
Understanding the Numbers: Zscaler's Finances
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Zscaler's remarkable performance in 3 months is evident. As of 31 October, 2023, the company achieved an impressive revenue growth rate of 39.7%. This signifies a substantial 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 below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -6.74%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Zscaler's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -4.37%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Zscaler's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.92%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Zscaler's debt-to-equity ratio is below the industry average at 1.51, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: What Are They?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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