Keybanc analyst Jackson Ader has maintained an Overweight rating on Zscaler (NASDAQ: ZS) while lowering the price target to $176 from $190. The adjustment reflects a revised outlook on the cybersecurity firm's stock performance potential.

The rating retention suggests continued confidence in Zscaler's business fundamentals despite the reduced price objective. The new target of $176 represents a decrease from the previous $190 level set by the analyst.

Rating and Price Target Details

The following table outlines the revised analyst action:

The decision to lower the price target while keeping the Overweight rating indicates that expectations for share price appreciation have been tempered, though the stock is still expected to outperform the broader market.

Pomerantz LLP is investigating potential claims against Zscaler, Inc. on behalf of investors concerning possible violations of federal securities laws. The investigation focuses on whether Zscaler and certain of its officers and/or directors engaged in securities fraud or other unlawful business practices. This scrutiny follows a significant decline in the company's stock price, which represents the steepest single-day drop since Zscaler went public.

On May 26, 2026, Zscaler reported its financial results for the third quarter of its 2026 fiscal year. Although the company's revenue and earnings exceeded expectations, it issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes. Zscaler guided for revenue of between $875 million to $878 million, falling short of the $879 million consensus expectation.

Following this news, Zscaler's stock price fell $58.19, or 31.52%, to close at $126.41 per share on May 27, 2026. The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing the guidance.

Investors who purchased Zscaler securities and suffered losses are encouraged to contact Danielle Peyton at Pomerantz LLP at 646-581-9980, ext. 7980, or via email at newaction@pomlaw.com to evaluate their options. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as a premier firm in the areas of corporate, securities, and antitrust class litigation.