Deutsche Bank raises Zscaler stock price target on customer enthusiasm

Published 06/06/2025, 10:06
Deutsche Bank raises Zscaler stock price target on customer enthusiasm

On Friday, Deutsche Bank (ETR:DBKGn) analysts increased the price target for Zscaler stock (NASDAQ: NASDAQ:ZS) to $350 from $300, while maintaining a Buy rating. The stock, currently trading near its 52-week high of $303.73, has shown remarkable momentum with a 66.78% gain year-to-date. The price target increase reflects positive feedback from a survey of 22 Zscaler customers at the company’s Zenith Live event.

The survey indicated that Zscaler’s customer base is committed to strengthening their relationship with the company. With impressive gross margins of 77.46% and revenue growth of 25.46%, the company continues to demonstrate strong operational execution. Customers expressed enthusiasm for the company’s zero trust platform, which aims to secure all entities, destinations, and data. This approach aligns with CEO Jay Chaudhry’s vision and has been met with strong demand. According to InvestingPro, 35 analysts have recently revised their earnings estimates upward, suggesting growing confidence in the company’s prospects.

The survey results suggest that Zscaler is seen as a key partner in addressing several challenges, including hardware firewall updates, generative AI disruption, and security operations center modernization. These factors are expected to support the company’s growth toward a $5 billion annual recurring revenue milestone.

Deutsche Bank analysts noted that while ongoing efforts are necessary to maintain product momentum, the survey broadly supports the company’s strategic direction. The findings underscore the importance of Zscaler’s solutions in the evolving cybersecurity landscape.

In other recent news, Zscaler has garnered attention from several analyst firms following its annual Zenith event. Jefferies raised its price target for Zscaler to $350, maintaining a Buy rating, citing positive momentum in Secure Access Service Edge (SASE) and Zero Trust solutions. Needham also increased its price target to $350, highlighting advancements in artificial intelligence and the company’s Zero Trust Everywhere initiative. RBC Capital adjusted its price target to $315, maintaining an Outperform rating, noting Zscaler’s strategic advancements and recent acquisition of Red Canary. Susquehanna reiterated a Positive rating with a $320 target, emphasizing platform growth opportunities and the integration of agentic operations. Wedbush raised its price target to $330, maintaining an Outperform rating, following strong earnings and demand for Zscaler’s Cloud and AI solutions. The analysts collectively express confidence in Zscaler’s growth potential and strategic positioning in the cybersecurity industry. These developments reflect Zscaler’s ongoing efforts to enhance its security offerings and market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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