Morgan Stanley Reduces PT on Zscaler (ZS) Stock

Zscaler, Inc. (NASDAQ:ZS) is one of the High Growth Large Cap Stocks to Buy Right Now. On December 18, Morgan Stanley reduced the price target on the company’s stock to $305 from $335, while keeping an “Overweight” rating on the company’s stock. As per the analyst, the cybersecurity stocks remained mainly flat on the year, while platform names increased by ~30%, on average. However, the rest of the space was down ~12%. According to the firm, the platform stocks are the easiest way to gain exposure to cyber stocks. It expects them to continue to outperform, believing that there are other opportunities as well.

In a different update, Mizuho upgraded Zscaler, Inc. (NASDAQ:ZS)’s stock from “Neutral” to “Outperform,” setting a price objective of $310.00. Mizuho highlighted that the decline in the stock came after strong fiscal Q1 2026 results. Notably, the company’s stock declined by over ~26% over the past 6 months. As per the firm, the investors are now well-compensated, despite describing that there has been a lack of transparency. Zscaler, Inc. (NASDAQ:ZS) is very well-placed within zero trust SASE.

Mizuho added that Zscaler, Inc. (NASDAQ:ZS)’s stock trades at a peak YTD EV to ARR discount as compared to its peers.

Zscaler, Inc. (NASDAQ:ZS) operates as a cloud security company.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.