TLDR
- Zscaler (ZS) reached a 52-week low of $162.85, declining 38% in the last six months and 25% year-to-date.
- JP Morgan maintained its Overweight rating but significantly reduced its price target from $354 to $267.
- Several other analysts have recently lowered their price targets, including Keybanc, Mizuho, and Truist.
- In spite of the decline, 28 analysts have raised their earnings estimates, and InvestingPro identifies the stock as undervalued.
- The average analyst price target of $306.99 suggests approximately 89% potential upside from current prices.
On February 20, Zscaler (ZS) fell to a 52-week low of $162.85, extending a difficult period that has erased almost a quarter of its value in this year alone.
The share price has decreased by about 38% over the past six months and is down roughly 17.5% over the last year. For a former market favorite in the cybersecurity sector, the sell-off has been significant.
Despite the downturn, the company’s fundamental business remains solid. Revenue was reported at $2.83 billion, a 23% increase year-over-year, while gross profit margins remained robust at 77%.
The stock’s decline seems to be more related to market expectations than to its operational performance.
JP Morgan analyst Brian Essex revised his stance on February 20, retaining an Overweight rating on ZS but making a sharp cut to his price target—from $354 down to $267. This represents a 24.6% reduction in his stock forecast.
He is part of a broader trend.
A Wave of Price Target Cuts
Keybanc reduced its target from $300 to $250 on February 17, and Mizuho adjusted its target from $310 to $265 on the same day. Truist Securities implemented the most substantial cut, lowering its target from $350 to $250—a reduction of nearly 29%—while maintaining a Buy rating.
Earlier in January, Citigroup decreased its target from $350 to $305, and Keybanc had previously lowered its target from $350 to $300.
The trend is evident: Wall Street maintains belief in the stock, but the anticipated trading level has been universally adjusted downward.
Barclays upgraded ZS from Equalweight to Overweight, although it also lowered its price target—from $264 to $228. The upgrade indicates confidence even as the firm expressed concerns about a deceleration in long-term growth rates.
Citizens maintained a firm $355 price target with a Market Outperform rating, citing strong customer retention due to high switching costs and complex migration processes as key reasons for its bullish stance.
What Analysts Are Saying Overall
Among 44 analysts, the average one-year price target is $306.99. The high estimate is $390, and the low is $215. With the stock trading near $162, this average target implies a potential upside of about 89%.
The consensus recommendation from 49 brokerages is 1.9 on a 1-to-5 scale, placing it in the “Outperform” category.
GuruFocus projects the stock’s fair value at $328.14 within one year, which would be a 102% increase from its current trading level.
Regarding earnings, 28 analysts have recently increased their estimates, and InvestingPro’s analysis indicates the stock is undervalued at present levels.
On the corporate front, Zscaler introduced a new AI Security Suite aimed at enterprises implementing AI tools. The company also appointed Dr. Swamy Kocherlakota as EVP of Agentic AI Security Engineering to head efforts in securing autonomous AI agents.
JP Morgan’s updated price target of $267, issued on February 20, 2026, stands as the most recent analyst revision on record.