What Analysts Are Saying About Zscaler Stock

Ratings for Zscaler ZS were provided by 21 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $236.9, a high estimate of $260.00, and a low estimate of $190.00. This current average reflects an increase of 6.11% from the previous average price target of $223.26.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Zscaler among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Zscaler compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Zscaler's future value. Examining the current and prior targets provides insight into analysts' changing 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.

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.

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.

Positive Revenue Trend: Examining Zscaler's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.41% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Zscaler's net margin falls below industry averages, indicating challenges in achieving 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 standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Zscaler's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.16%, 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 0.77, reflecting a lower dependency on debt financing and a more conservative financial approach.

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 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.

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