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Investing.com - TD Cowen has raised its price target on Zscaler (NASDAQ:ZS) to $330 from $300 while maintaining a Buy rating following the company’s strong fourth-quarter performance. According to InvestingPro data, analyst targets for the cybersecurity firm range from $215 to $385, with the stock showing impressive momentum, gaining over 52% year-to-date.
The cybersecurity firm exceeded expectations across all metrics for the fourth quarter, with TD Cowen noting that Zscaler showed no signs of macroeconomic slowdown in its business. The company maintains robust gross profit margins of 77.46% and has achieved 25.46% revenue growth over the last twelve months, according to InvestingPro analysis.
TD Cowen highlighted that Zscaler’s platform is resonating well with large customers, while its Z-Flex pricing plan has been positively received by clients looking to expand their business with the company, providing revenue uplift.
The firm also pointed to accelerated adoption of Agentic AI within Security Operations Centers (SOCs), further boosted by Red Canary, as another factor contributing to Zscaler’s strong performance.
With Zscaler being one of only two pure-play SaaS security vendors to surpass $3 billion in Annual Recurring Revenue (ARR), TD Cowen views its long-term fiscal year 2028 target of $5 billion ARR as "highly feasible," supported by a compound annual growth rate of approximately 20%.
In other recent news, Zscaler has reported robust fourth-quarter results, prompting several financial firms to adjust their price targets for the company. RBC Capital increased its price target to $335, citing the company’s performance that exceeded investor expectations across all metrics. Truist Securities reiterated its Buy rating with a price target of $350, highlighting strong demand for Zscaler’s platform solutions, including Zero Trust Everywhere and Data Security Everywhere. BMO Capital also raised its price target to $315, noting a solid quarter and increased fiscal year 2026 estimates both with and without the Red Canary acquisition. Piper Sandler adjusted its price target to $280, observing that Zscaler’s annual recurring revenue exceeded $3 billion. KeyBanc raised its price target to $350, pointing out that the company’s fourth-quarter billings surpassed expectations by $57 million. These developments reflect a positive outlook from analysts on Zscaler’s recent performance.
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