In the preceding three months, 35 analysts have released ratings for Zscaler (NASDAQ:ZS), presenting a wide array of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 16 | 9 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 7 | 13 | 6 | 0 | 0 |
| 2M Ago | 2 | 2 | 0 | 0 | 0 |
| 3M Ago | 1 | 1 | 2 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $228.91, with a high estimate of $290.00 and a low estimate of $180.00. Experiencing a 8.81% decline, the current average is now lower than the previous average price target of $251.03.
Exploring Analyst Ratings: An In-Depth Overview
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 |
|---|---|---|---|---|---|
| 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 | - |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $230.00 | - |
| Ki Bin Kim | Truist Securities | Maintains | Buy | $260.00 | $260.00 |
| Yi Fu Lee | Cantor Fitzgerald | Maintains | Neutral | $230.00 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Zscaler. This insight gives a snapshot of analysts' perspectives on 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 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.
For valuable insights into Zscaler's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Zscaler analyst ratings.
Delving into Zscaler's Background
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.
Zscaler: A Financial Overview
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Zscaler displayed positive results in 3 months. As of 30 April, 2024, the company achieved a solid revenue growth rate of approximately 5.37%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Zscaler's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 3.46%, the company may encounter 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 1.86%, the company may need to address challenges in generating satisfactory returns for shareholders.
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: With a below-average debt-to-equity ratio of 1.13, Zscaler adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: Simplified
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
