Added to YB: 2026-03-26
Pitch date: 2026-03-24
ZS [neutral]
Zscaler, Inc.
+47.92%
current return
Author Info
Investment ideas on Digital Infra, SaaS & Defense. Sign up for the newsletter.
Company Info
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zero Trust SASE, a solution that securely connects workforces, AI agents, workloads, and IoT/OT devices to cloud apps and AI services; Zscaler Internet Access, which provides advanced threat protection, sandbox, and zero trust firewall; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, and reduced attack surface; Zero Trust Browser, a solution that secures browser-based access to business applications for the extended workforce, including third parties and partners; Zscaler Digital Experience, a solution that monitors end-user experience and helps organizations identify and resolve performance issues across their digital environment; Zero Trust Branch; and Zero Trust Cloud solutions.
Market Cap
$33.8B
Pitch Price
$142.09
Price Target
155.00 (-26%)
Dividend
N/A
EV/EBITDA
190.32
P/E
-525.27
EV/Sales
9.59
Sector
Software
Category
value
Zscaler (ZS) Executive Summary: Zscaler Just Broke Analysts' Most Bearish Targets: What Happens Next?
ZS (overview): Cloud security leader down 54% from $334 peak to $152, below all analyst targets (lowest $180 Needham, $209 BTIG) despite unanimous Buy ratings. Q1 FCF strong at $153.6M, 77% gross margin, clean balance sheet. Revenue growth decelerated 35%→23-26%, GAAP unprofitable but cash generative. AI threat fears overblown per analysts; AI attacks +89%, cloud intrusions +266% support demand case. Trading at mid-2024 levels; watch $140 support.
Read full article (5 min)