Cantor Fitzgerald lifts Zscaler stock target to $275, keeps Overweight

Published 27/05/2025, 11:58
Cantor Fitzgerald lifts Zscaler stock target to $275, keeps Overweight

On Tuesday, Cantor Fitzgerald increased its price target for Zscaler (NASDAQ:ZS) shares from $250.00 to $275.00. The firm maintained its Overweight rating on the cybersecurity company’s stock, which currently trades at $254.10 and is approaching its 52-week high of $255.87. The adjustment comes as Zscaler approaches its third fiscal quarter earnings for 2025, with the firm expressing continued confidence in the Secure Access Service Edge (SASE) market opportunity.

The research firm’s analyst cited positive findings from recent checks and a firm belief in the long-term growth potential for enterprise SASE solutions. According to the analyst, Zscaler’s Zero Trust Everywhere platform is poised for consolidation, with new product offerings and expansions within large customer bases contributing to the company’s growth trajectory. InvestingPro data shows impressive revenue growth of 27.77% and industry-leading gross profit margins of 77.86%, supporting the company’s strong market position.

Zscaler’s focus on enterprise security is aligned with the increasing demand for robust cybersecurity solutions. The company’s SASE framework integrates both network and security functions with the aim to support dynamic secure access. The analyst’s outlook suggests that Zscaler is well-positioned to capitalize on the evolving security needs of enterprises.

The raised price target reflects Cantor Fitzgerald’s view that Zscaler’s strategic initiatives and product innovations are likely to drive its stock value higher. The Overweight rating indicates that the firm expects the company’s stock performance to outpace the average return of the stocks the firm covers over the next 12 to 18 months. According to InvestingPro analysis, the stock appears slightly overvalued at its current market capitalization of $39.32 billion. Subscribers can access 13 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

As the market anticipates Zscaler’s upcoming earnings report on May 29, 2025, the raised price target and maintained Overweight rating by Cantor Fitzgerald may influence investor sentiment. Zscaler’s continued investment in the SASE market and its Zero Trust strategy are central to the firm’s optimistic outlook for the cybersecurity company’s financial future. Get deeper insights into Zscaler’s financial health and growth prospects with InvestingPro’s detailed analysis and real-time metrics.

In other recent news, Zscaler has seen several analyst firms adjust their price targets for its stock, reflecting varied levels of confidence in the company’s future performance. Jefferies raised its target to $295, maintaining a Buy rating, citing positive indicators and expectations for growth in the Secure Access Service Edge (SASE) market. KeyBanc also increased its target to $290, emphasizing Zscaler’s market leadership and potential growth under new leadership, while maintaining an Overweight rating. Meanwhile, Loop Capital adjusted its target to $250, keeping a Hold rating, and noted mixed findings but anticipated modest outperformance relative to forecasts. Stifel, maintaining a Buy rating, raised its target to $270, attributing this to strong checks and a history of exceeding expectations.

Additionally, Zscaler announced the appointment of Raj Judge to its Board of Directors and as Executive Vice President of Corporate Strategy and Ventures. This move is expected to bolster the company’s growth strategies and venture investment initiatives. Judge’s extensive experience in the technology legal and venture capital fields is anticipated to significantly contribute to Zscaler’s innovation and growth efforts. His appointment underscores Zscaler’s commitment to advancing its corporate strategy and realizing its long-term vision.

These developments come as Zscaler prepares to report its fiscal third-quarter results, with analysts closely watching for insights into fiscal year 2025 guidance and other strategic initiatives. The company is also addressing potential CFO transition risks with the planned retirement of its long-time Chief Financial Officer, Remo Canessa. The combination of analyst optimism, strategic appointments, and upcoming financial reports highlights a pivotal period for Zscaler.

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