Eight Firms Raise Zscaler Targets After First Investor Day Since 2021, but Morgan Stanley Stays Below the Stock

Eight firms raised price targets on ZS after the company held its first analyst day since 2021, where it put forward a $10 billion annual recurring revenue ambition, lifting targets to between $185 and $275. Stifel and Cantor Fitzgerald were among them, with Cantor at $275. Robert W. Baird separately raised its target to $285 from $230 with an outperform rating, a 34.28% premium to the prior close. The analyst consensus is Moderate Buy, with 34 Buy, 7 Hold and 1 Sell ratings and an average target of $224, against shares that opened near $212.

The targets are not uniform. Morgan Stanley analyst Meta Marshall raised the firm's target to $185 but kept an Equal Weight rating, a target below where the stock trades, and the firm wants to see client growth before turning more positive. BofA pointed out that the concrete plan laid out was more than $8 billion of organic ARR by FY31, a lower figure than the $10 billion headline ambition, and Canaccord said the company used the event to put limits around that ambition. BTIG reaffirmed its Neutral rating.

The fundamentals behind the optimism come from the most recent quarter: EPS of $1.19 against a $1.09 consensus, revenue of $898.19 million, up 24.9%, and fiscal 2027 guidance left intact. The stock has rallied about 25% over the past month.

The next check is fiscal Q1, which management expects to contribute about 15% of fiscal 2027 net new ARR. A result in line supports the higher targets; a miss would make Morgan Stanley's more cautious call look better grounded.