In a report released today, Peter Weed from Bernstein downgraded Zscaler to a Hold, with a price target of $264.00.
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Peter Weed has given his Hold rating due to a combination of factors that impact Zscaler’s current market position and future growth prospects. While Zscaler is recognized as a strong player in the cybersecurity sector, recent earnings have introduced concerns about its 2026 annual recurring revenue guidance amidst growing competition, leading to a notable drop in stock value.
Additionally, Zscaler’s valuation is considered fair, aligning with market expectations, but lacks the premium appeal due to uncertainties surrounding its growth sustainability. The company’s focus remains on its core cloud-centric network cybersecurity segment, which may limit its long-term growth compared to broader platforms like CrowdStrike and Palo Alto Networks. Consequently, maintaining a premium valuation could be challenging, prompting the Hold rating as investors consider other opportunities in the cybersecurity space.
In another report released on November 27, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $272.00 price target.