Zscaler (NASDAQ:ZS) underwent analysis by 23 analysts in the last quarter, revealing a spectrum of viewpoints 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 | 7 | 13 | 3 | 0 | 0 |
| Last 30D | 3 | 8 | 2 | 0 | 0 |
| 1M Ago | 3 | 4 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $228.91, along with a high estimate of $270.00 and a low estimate of $180.00. Witnessing a positive shift, the current average has risen by 3.67% from the previous average price target of $220.81.
Deciphering Analyst Ratings: An In-Depth Analysis
The perception of Zscaler by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Rob Owens | Piper Sandler | Raises | Overweight | $235.00 | $215.00 |
| Yun Kim | Loop Capital | Lowers | Hold | $195.00 | $200.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $222.00 | $197.00 |
| Matthew Hedberg | RBC Capital | Maintains | Outperform | $230.00 | $230.00 |
| Ittai Kidron | Oppenheimer | Raises | Outperform | $250.00 | $230.00 |
| Eric Heath | Keybanc | Raises | Overweight | $250.00 | $245.00 |
| Patrick Colville | Scotiabank | Raises | Sector Outperform | $205.00 | $195.00 |
| Trevor Walsh | JMP Securities | Lowers | Market Outperform | $240.00 | $270.00 |
| Shyam Patil | Susquehanna | Raises | Positive | $225.00 | $210.00 |
| Hamza Fodderwala | Morgan Stanley | Lowers | Equal-Weight | $205.00 | $215.00 |
| Patrick Colville | Deutsche Bank | Raises | Buy | $225.00 | $200.00 |
| Kingsley Crane | Canaccord Genuity | Raises | Buy | $230.00 | $220.00 |
| Mike Cikos | Needham | Announces | Buy | $240.00 | - |
| Brian Essex | JP Morgan | Raises | Overweight | $240.00 | $220.00 |
| Gray Powell | BTIG | Raises | Buy | $238.00 | $205.00 |
| Joseph Gallo | Jefferies | Raises | Buy | $245.00 | $225.00 |
| Eric Heath | Keybanc | Raises | Overweight | $245.00 | $220.00 |
| Saket Kalia | Barclays | Raises | Overweight | $220.00 | $200.00 |
| Adam Borg | Stifel | Raises | Buy | $235.00 | $220.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $270.00 | $270.00 |
| Andrew DeGasperi | Exane BNP Paribas | Announces | Neutral | $180.00 | - |
| Fatima Boolani | Citigroup | Lowers | Buy | $230.00 | $240.00 |
| Shyam Patil | Susquehanna | Maintains | Positive | $210.00 | $210.00 |
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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Zscaler compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Zscaler's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Zscaler's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Zscaler analyst ratings.
About Zscaler
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.
Financial Insights: Zscaler
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: Zscaler displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 30.3%. This indicates a notable 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 -2.51%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -1.26%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Zscaler's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.33%, the company showcases efficient use of assets and strong financial health.
Debt Management: Zscaler's debt-to-equity ratio is below the industry average at 0.97, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
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.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
