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Truist Cuts Zscaler Price Target to $200

Truist Securities cuts Zscaler price target to $200, maintains Buy rating. Conservative FY2027 outlook drives stock down 20%.

Samuel Nguyen
BySamuel Nguyen- Senior Editor
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Truist Securities lowered its price target on Zscaler Inc. (NASDAQ:ZS) to $200 from $250, while maintaining a Buy rating.

The company reported a solid fiscal Q3 2026 beat, but a conservative outlook for FY2027 with 16-17% growth versus 18.4% consensus sent shares down about 20%. Bond.az data indicates strong gross margins near 77%.

Despite the pullback, Truist remains constructive on long-term growth. Sales leadership disruption and tempered new logo expectations influenced the cautious stance.

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