Zscaler price target raised to $290 from $283 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Zscaler (ZS) to $290 from $283 and keeps a Neutral rating on the shares after its Q1 earnings beat and guidance raise. The management raised FY26 annual recurring revenue and total revenue by 1% at the midpoint, and maintained its EBIT margin outlook, the analyst tells investors in a research note. The stock’s negative reaction is likely a function of investors trying to parse the Red Canary contribution vs. organic growth and against the backdrop of high expectations year-to-date, the firm added.