Zscaler (ZS) Stock Gets a Vote of Confidence From Wall Street – Here’s Why

TLDR

• Mizuho raised its Zscaler price target to $220 from $210 and kept an Outperform rating.
• The move follows Ross Tackett’s promotion to Chief Revenue Officer, replacing Mike Rich.
• Guggenheim also reiterated a Buy rating with a $214 price target after the change.
• Zscaler stock traded at $214.64, up 0.09% on the day.
• Zscaler will hold an Investor Day in New York City on October 6.

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Zscaler (ZS) stock traded at $214.64 on Thursday, up 0.09% for the day. Mizuho raised its price target on the stock to $220 from $210, keeping its Outperform rating in place.

Zscaler, Inc., ZS

The new target lines up with wider Wall Street optimism. Mizuho said 36 analysts have raised their earnings estimates for the upcoming period.

According to InvestingPro, Zscaler looks undervalued at its current price. The platform puts Fair Value at $226.27, above where the stock trades today.

Leadership Change Sparks The Update

The price target bump comes after Zscaler announced Ross Tackett’s promotion to Chief Revenue Officer. He replaces Mike Rich, who is stepping down from the role.

Tackett previously led Worldwide Sales and ran the Americas business. He joined Zscaler from ServiceNow three years ago.

Mizuho spoke with the company directly after the announcement. Management stressed continuity, pointing to Tackett’s experience and his deep involvement in building the company’s forecasts.

The firm said a formal guidance reiteration wasn’t seen as necessary. Tackett played an integral role in shaping the outlook that was issued just three weeks ago.

Guggenheim also weighed in this week. The firm kept its Buy rating and a $214 price target following the leadership shuffle.

Rich joined Zscaler in November 2023 to shift the company’s sales approach. He moved it from a transactional model toward a more account-centric, strategic one.

Guggenheim noted that New ARR returned to double-digit growth starting in the January 2025 quarter. That pace has held steady for seven quarters running, based on the firm’s model.

Rich isn’t leaving entirely. He’ll stay on as a strategic advisor through December 31, 2026, while Tackett takes over the CRO seat on October 1.

The Numbers Behind The Rating

Zscaler’s fundamentals give analysts plenty to point to. The company posted a 77% gross profit margin over the last twelve months.

Revenue growth came in at 25% over the same period. That growth shows up in the stock’s performance too, with a 54% return over the past six months.

Mizuho pointed to increased comparable multiples as the reason for its higher target. The firm still sees Zscaler well positioned in the SASE and Zero Trust space, even with more competition in the mix.

Zscaler’s fiscal fourth quarter also backed up the bullish case. Revenue hit $898.2 million, a 25% jump year over year that beat consensus by 2.4%.

Other firms have joined the chorus. FBN Securities raised its target to $190 with an Outperform rating, while Stephens moved to $225.

JPMorgan kept its $215 target in place. The firm pointed to Zscaler’s revenue and annual recurring revenue both topping expectations.

Zscaler confirmed on September 23 that it will host an Investor Day in New York City on October 6. Leadership will present the company’s strategy, long-term growth drivers, and financial outlook at the event.