TLDR
- Zscaler (ZS) hit a 52-week low of $162.85, down 38% over six months and 25% year-to-date
- JP Morgan kept its Overweight rating but slashed its price target from $354 to $267
- Multiple analysts have trimmed price targets recently, including Keybanc, Mizuho, and Truist
- Despite the drop, 28 analysts revised earnings estimates upward and InvestingPro flags the stock as undervalued
- The average analyst price target of $306.99 implies roughly 89% upside from current levels
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Zscaler (ZS) touched a 52-week low of $162.85 on February 20, sliding further into a rough stretch that has wiped out nearly a quarter of its value this year alone.
Zscaler, Inc., ZS
The stock is down about 38% over the past six months and has lost roughly 17.5% over the past year. For a company that was a market darling in the cybersecurity space, the sell-off has been hard to ignore.
Despite the pain, Zscaler’s underlying business is not falling apart. Revenue came in at $2.83 billion, growing 23% year-over-year, with gross profit margins holding strong at 77%.
The stock drop appears to be more about expectations than execution.
JP Morgan analyst Brian Essex updated his view on February 20, keeping an Overweight rating on ZS but cutting the price target sharply — from $354 down to $267. That’s a 24.6% reduction in his outlook for the stock.
He’s not alone.
A Wave of Price Target Cuts
Keybanc trimmed its target from $300 to $250 on February 17, while Mizuho moved from $310 to $265 on the same day. Truist Securities made the deepest cut, dropping from $350 to $250 — a nearly 29% reduction — while holding its Buy rating.
Earlier in January, Citigroup lowered its target from $350 to $305, and Keybanc had already made a prior cut from $350 to $300.
The pattern is clear: Wall Street still believes in the stock, but the bar for where it should trade has come down across the board.
Barclays actually upgraded ZS from Equalweight to Overweight, though it too lowered its price target — from $264 to $228. The upgrade signals confidence even as the firm flagged concerns about long-term growth rates slowing.
Citizens held firm at a $355 price target with a Market Outperform rating, pointing to strong customer retention driven by high switching costs and complex migration processes as reasons to stay bullish.
What Analysts Are Saying Overall
Across 44 analysts, the average one-year price target sits at $306.99. The high end is $390, the low is $215. At current prices near $162, that average target represents an implied upside of around 89%.
The consensus recommendation across 49 brokerages sits at 1.9 on a scale of 1 to 5, which lands in “Outperform” territory.
GuruFocus estimates the stock’s fair value at $328.14 in one year, which would be a 102% move from where it’s trading now.
On the earnings side, 28 analysts have recently revised their estimates upward, and InvestingPro’s analysis flags the stock as undervalued at current levels.
On the business side, Zscaler launched a new AI Security Suite targeting enterprises deploying AI tools. The company also named Dr. Swamy Kocherlakota as EVP of Agentic AI Security Engineering to lead work on securing autonomous AI agents.
JP Morgan’s revised price target of $267, set on February 20, 2026, is the most recent analyst update on record.
