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Investing.com - Cantor Fitzgerald reiterated an Overweight rating and $300 price target on Zscaler (NASDAQ:ZS) shares. This optimistic outlook aligns with broader analyst sentiment, as InvestingPro data shows 40 analysts have revised their earnings upwards for the upcoming period. The stock appears undervalued according to InvestingPro’s Fair Value analysis.
The firm noted that partners described Zscaler as tracking above plan and continuing to perform well. The company’s financial performance supports this view, with revenue growing 24% over the last twelve months and gross profit margins of 77%. Many non-Palo Alto accounts view Zscaler as the core zero trust exchange and are building their security policy around it.
Partners expect Zscaler to develop a sizable AI security play within its existing installed base, according to the firm.
Zscaler provides cloud-based security solutions focused on zero trust architecture. The company competes in the enterprise security market.
Cantor Fitzgerald maintained its Overweight rating on the stock with a $300 price target.
In other recent news, Zscaler Inc. reported strong second-quarter fiscal 2026 results, surpassing consensus estimates for revenue, annual recurring revenue, earnings per share, and free cash flow. The company also raised its full-year guidance across key metrics, reflecting sustained demand for its Zero Trust platform. Despite these positive earnings, Freedom Capital Markets lowered its price target on Zscaler to $270 from $320, while maintaining a Buy rating, citing SaaS valuation concerns. Similarly, KeyBanc reduced its price target to $160 from $220, maintaining an Overweight rating, after a survey indicated low optimism for Zscaler as a security consolidator.
BTIG downgraded Zscaler to Neutral from Buy, removing the company from its first-half 2026 top picks list due to competitive concerns. The downgrade was based on field checks revealing cautious sentiment about the competitive landscape over the next six to 12 months. Meanwhile, Cantor Fitzgerald reiterated an Overweight rating on Zscaler, emphasizing the company’s strong quarterly performance. Additionally, Evercore analysts noted that the release of Anthropic’s Claude Mythos model, which specializes in cybersecurity tasks, could pressure cybersecurity stocks like Zscaler. These developments highlight the mixed sentiment among analysts regarding Zscaler’s future outlook.
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