
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler has demonstrated a robust performance with calculated billings reaching $743 million, which reflects an 18% year-over-year growth that surpassed Street expectations by $23 million. Positive momentum is driven by a significant 25% year-over-year increase in unscheduled billings and net new Annual Contract Value (ACV) from its Data Protection segment, which grew over 40% year-over-year, particularly in the retail and financial services sectors. Management’s ongoing investment in sales capacity, along with their effective go-to-market initiatives, underscores Zscaler's potential for sustained growth, reinforcing a favorable outlook for the company in the cybersecurity sector.
Bears say
Zscaler faces a challenging outlook due to higher than expected sales force attrition, which may disrupt sales and renewal cycles in the near term. Management has indicated that the pressure on gross margins stemming from newly released products, optimized for speed-to-market, may also adversely impact profitability. Additionally, the intensified competitive landscape and the critical need for organizations to adopt Zscaler’s cloud platform further complicate the company's growth prospects, putting future profitability at risk.
This aggregate rating is based on analysts' research of Zscaler and is not a guaranteed prediction by Public.com or investment advice.
Zscaler (ZS) Analyst Forecast & Price Prediction
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