Zscaler Stock ($ZS) Zooms 8% Higher as Analysts Hike Price Targets

Shares in cybersecurity firm Zscaler(ZS) zoomed 8% higher today after analysts hailed its accelerating momentum.

Growth on Track

Catharine Trebnick of Rosenblatt Securities upped her price target on Zscaler to $315 from a previous $251.11 and kept a Buy rating on the stock.

She said the company, whose share price has rocketed 51% this year, had delivered a standout Q3 performance and raised its full-year 2025 outlook.

Revenue jumped 23% year-over-year to $678 million with calculated billings up 25% to $785 million. Its annual recurring revenue of $2.9 billion also marked the third consecutive quarter of 23% year-over-year growth.

Trebnick said this put the company on track for over $3 billion by the end of the fourth quarter and its longer-term goal of over $5 billion.

Wallet Share

Trebnick said the company’s strategic momentum was accelerating, helped by the successful launch of the Z-flex purchasing program, which allows customers to be flexible in their adoption of Zscaler services.

She also hailed the recent acquisition of Red Canary to boost its cloud security offerings.

Elsewhere, Needham also raised its price target to $310 from $240 and kept a Buy rating on the shares. It said Zscaler’s platform expansion and go-to-market changes under Chief Revenue Officer Mike Rich are taking hold as the company looks to “drive deeper, more strategic relationships with customers while gaining greater wallet-share.”

Is ZS a Good Stock to Buy Now?

On TipRanks, ZS has a Strong Buy consensus based on 27 Buy and 8 Hold ratings. Its highest price target is $315. ZS stock’s consensus price target is $256.24 implying a 6.05% downside.

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