Nebius Group prices $1 billion share offering at $92.50 per share
Investing.com - Canaccord Genuity raised its price target on Zscaler (NASDAQ:ZS) to $340.00 from $320.00 on Thursday, while maintaining a Buy rating on the cybersecurity company’s stock. The company’s stock has already delivered an impressive 72% return over the past year, with current analyst targets ranging from $251 to $385, according to InvestingPro data.
The research firm cited Zscaler’s "robust technology moat" and "strong platform uptake" as key factors supporting its continued positive outlook on the company.
Canaccord noted that Zscaler is benefiting from multiple industry tailwinds, including cloud migration, security modernization, adoption of Zero Trust principles, a distributed workforce, and rapid growth in targeted breaches.
The firm highlighted broader platform adoption trends with increasing spend per customer as Zscaler targets what Canaccord identifies as a "well-defined $100B+ SAM" (serviceable addressable market).
Canaccord’s new price target is based on approximately 15 times enterprise value to sales on its calendar 2026 estimate, which the firm noted "remains below category-leading peers like CRWD." Based on comprehensive analysis available in the InvestingPro Research Report, Zscaler currently appears fairly valued, with strong financial health metrics and positive growth indicators.
In other recent news, Zscaler Inc . reported its fourth-quarter 2025 earnings, which showed a notable miss in earnings per share (EPS) compared to analyst expectations. The company posted an EPS of -$0.11, significantly below the anticipated $0.80, marking a surprise of -113.75%. However, Zscaler did surpass revenue projections, reporting $719 million against the forecasted $706.95 million. Despite this revenue beat, the substantial EPS miss drew attention from the market. Analysts had expected a different outcome, which may have contributed to the market’s reaction. These developments are important for investors to consider when evaluating the company’s financial health. The earnings report highlights the challenges Zscaler faces in meeting profit expectations despite revenue growth.
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