33 analysts have shared their evaluations of Zscaler (NASDAQ:ZS) during the recent three months, expressing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 16 | 8 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 8 | 13 | 6 | 0 | 0 |
| 3M Ago | 1 | 2 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $227.64, a high estimate of $290.00, and a low estimate of $180.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 8.85%.
Interpreting Analyst Ratings: A Closer Look
An in-depth analysis of recent analyst actions unveils how financial experts perceive Zscaler. The following summary 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 |
|---|---|---|---|---|---|
| Gregg Moskowitz | Mizuho | Maintains | Neutral | $220.00 | $220.00 |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $200.00 | $200.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $270.00 | $270.00 |
| Keith Bachman | BMO Capital | Maintains | Outperform | $208.00 | $208.00 |
| Brian Essex | JP Morgan | Raises | Overweight | $230.00 | $205.00 |
| Alex Henderson | Needham | Maintains | Strong Buy | $290.00 | $290.00 |
| Fatima Boolani | Citigroup | Lowers | Buy | $240.00 | $270.00 |
| Kingsley Crane | Canaccord Genuity | Lowers | Buy | $220.00 | $260.00 |
| Patrick Colville | Scotiabank | Lowers | Sector Outperform | $210.00 | $250.00 |
| Yun Kim | Loop Capital | Lowers | Hold | $180.00 | $225.00 |
| Saket Kalia | Barclays | Raises | Overweight | $210.00 | $205.00 |
| Matthew Hedberg | RBC Capital | Raises | Outperform | $230.00 | $215.00 |
| Brian Essex | JP Morgan | Raises | Neutral | $205.00 | $200.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $270.00 | $270.00 |
| Ittai Kidron | Oppenheimer | Lowers | Outperform | $260.00 | $290.00 |
| Yi Fu Lee | Cantor Fitzgerald | Lowers | Neutral | $200.00 | $230.00 |
| Shyam Patil | Susquehanna | Lowers | Positive | $210.00 | $275.00 |
| Gray Powell | BTIG | Lowers | Buy | $220.00 | $258.00 |
| Peter Weed | Bernstein | Lowers | Outperform | $270.00 | $280.00 |
| Gregg Moskowitz | Mizuho | Lowers | Buy | $220.00 | $240.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $208.00 | $192.00 |
| Alex Henderson | Needham | Maintains | Strong Buy | $290.00 | $290.00 |
| Keith Bachman | BMO Capital | Lowers | Outperform | $192.00 | $255.00 |
| Roger Boyd | UBS | Lowers | Buy | $270.00 | $300.00 |
| Andrew Nowinski | Wells Fargo | Lowers | Equal-Weight | $182.00 | $275.00 |
| Catharine Trebnick | Rosenblatt | Announces | Neutral | $190.00 | - |
| Hamza Fodderwala | Morgan Stanley | Lowers | Equal-Weight | $202.00 | $214.00 |
| Shrenik Kothari | Baird | Lowers | Outperform | $260.00 | $265.00 |
| Saket Kalia | Barclays | Lowers | Overweight | $205.00 | $240.00 |
| Gregg Moskowitz | Mizuho | Lowers | Buy | $240.00 | $310.00 |
| Adam Borg | Stifel | Lowers | Buy | $220.00 | $270.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $270.00 | $270.00 |
| Eric Heath | Keybanc | Announces | Overweight | $220.00 | - |
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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Zscaler compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
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.
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 revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2024, the company achieved a revenue growth rate of approximately 32.09%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: Zscaler's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 3.46%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Zscaler's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.86%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Zscaler's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.47%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Zscaler's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.13.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.