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JMP Securities reiterated its Market Outperform rating and $310.00 price target on Zscaler (NASDAQ:ZS) Tuesday, highlighting the company’s consistent execution amid uncertain market conditions. The stock has demonstrated remarkable momentum, surging 69% year-to-date, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The research firm noted that Zscaler continues to deliver strong performance while maintaining high levels of growth, scale, and profitability despite requiring strategic C-level decision-maker buy-in for its core transformational products. With an impressive gross profit margin of 77.46% and revenue growth of 25.46%, the company’s financial metrics support this positive assessment. For deeper insights into Zscaler’s financial health and growth potential, check out the comprehensive Pro Research Report available on InvestingPro.
JMP cited several factors supporting its positive outlook, including Zscaler’s experienced management team led by CEO and Co-Founder Jay Chaudhry, alongside a CRO and CMO who continue to improve sales productivity as the company targets $5 billion in annual recurring revenue.
The firm also pointed to Zscaler’s demonstrated success as a Zero Trust security platform, evidenced by multiple new logo wins in the quarter, including a seven-figure deal with a Fortune 100 beverage company for ZIA and ZPA user products, along with an initial purchase of Data Security Everywhere.
JMP emphasized Zscaler’s impressive financial metrics, delivering 23% revenue growth and 18% free cash flow margin in the fiscal third quarter of 2025 at a $2 billion-plus ARR scale, while expanding its market leadership by monitoring over half a trillion transactions daily, up from 30 billion at the time of its IPO.
In other recent news, Zscaler has seen a series of analyst upgrades and price target increases, reflecting growing confidence in its market position and growth prospects. Wells Fargo (NYSE:WFC) upgraded Zscaler’s stock rating from Equal Weight to Overweight and significantly raised its price target to $385, citing expected improvements in new and upsell business leading to strong billing growth in the coming years. JPMorgan also raised its price target to $348 while maintaining an Overweight rating, highlighting increased demand for Zscaler’s ’Firewall Free’ architecture. Similarly, Cantor Fitzgerald increased its price target to $340, attributing this to anticipated billing acceleration driven by cloud security and AI analytics adoption. Truist Securities raised its price target to $350, maintaining a Buy rating, and noted Zscaler’s strategic focus on Zero Trust architecture and successful go-to-market initiatives. Citizens JMP reaffirmed its Market Outperform rating with a price target of $310 following the company’s Zenith Live 2025 event, which emphasized cloud strategies and innovations. Collectively, these developments underscore a strong growth outlook for Zscaler as it continues to expand its cybersecurity offerings.
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