Keybanc analyst Eric Heath has maintained an Overweight rating on Zscaler and raised the price target to $185. The adjustment increases the previous target of $176, reflecting a more optimistic outlook for the cybersecurity firm's stock performance.

The revised price target suggests potential upside from current trading levels. Zscaler, listed on NASDAQ under the ticker symbol ZS, continues to be viewed favorably by Keybanc amidst market conditions.

Zscaler, Inc. is under investigation by Bragar Eagel & Squire, P.C. on behalf of stockholders regarding potential violations of federal securities laws and other unlawful business practices. The law firm's inquiry follows a significant decline in Zscaler's stock price after the company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes. The stock drop marked the steepest single-day decline since the company went public.

On May 27, 2026, Zscaler reported quarterly results that exceeded analyst expectations but provided guidance that fell short of projections. The company also revealed disruptions related to changes in its sales leadership. Investors expressed concerns about slowing growth projections, weaker customer expansion, and uncertainty surrounding the company's sales execution and outlook.

Following the announcement, Zscaler's stock price fell $58.19, or 31.52%, to close at $126.41 per share on May 27, 2026. The sharp decline prompted the investigation by Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm with offices in New York, South Carolina, and California.

Key Stock Movement Details

The firm represents individual and institutional investors in securities, derivative, and commercial litigation. Stockholders who purchased or acquired Zscaler shares and suffered losses, or those with information relevant to the investigation, are encouraged to contact Bragar Eagel & Squire, P.C. Partners Brandon Walker and Melissa Fortunato are leading the inquiry and can be reached via email at investigations@bespc.com or by telephone at (212) 355-4648. There is no cost or obligation to participate in the investigation.