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Zscaler (NASDAQ:ZS) Given New $210.00 Price Target at Canaccord Genuity Group
- Zscaler shares plummeted 20.78% to $146.24 in after-hours trading Tuesday evening following disappointing forward guidance, with stock falling more than 20% in premarket trading Wednesday despite solid fiscal Q3 results.
- Despite delivering $850.48 million in Q3 revenue, up 25% year-over-year with adjusted EPS of $1.08, management projected fiscal 2027 growth to decelerate to 16% to 17%, citing two sales leader departures at quarter's end.
- Q4 revenue guidance of $875 million to $878 million fell short of Wall Street consensus of $878.53 million, while Bloomberg Intelligence noted muted new customer additions and missing AI agent security capabilities as limiting factors.
- Cramer flagged the deceleration as immediate market enthusiasm faded, prompting Mizuho, RBC Capital Markets, and Evercore ISI to lower price targets, though Citi identified potential upside if new customer growth wasn't fully factored into 2027 projections.
- Zscaler underperforms the Nasdaq Composite by 32.65 percentage points year-to-date, with peers CrowdStrike and Palo Alto Networks also declining around 2% Wednesday as traders remain highly sensitive to software-sector weakness.
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17 Articles
Coverage Details
Total News Sources17
Leaning Left3Leaning Right1Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
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