Morgan Stanley upgrades Zscaler to Overweight with new PT of $320.

Morgan Stanley upgrades Zscaler to Overweight with new PT of $320.

In a significant move, Morgan Stanley has upgraded Zscaler Inc. (NASDAQ: ZS) to "Overweight" from "Underweight," raising its price target to $320 from $280. The upgrade reflects the brokerage's bullish outlook on Zscaler's position in the zero-trust network access (ZTNA) market and its leadership in the secure service edge (SASE) technology space [1].

Zscaler, a cloud security firm, saw its shares rise 2.3% to $283.4 in premarket trading on Tuesday, following the upgrade. The company is currently valued at $43.14 billion and has seen its stock surge over 41% in the past six months [2].

Morgan Stanley highlighted Zscaler's strong market position, noting that it holds a leading 32% market share in the ZTNA segment. The investment firm also underscored the growing importance of SASE technology, which provides consistent security policies across both on-premise and cloud environments. Gartner predicts that SASE adoption among enterprises will grow significantly from 14% today to 47% by 2027 [2].

The brokerage believes Zscaler is well-positioned to leverage its zero-trust leadership to build out a comprehensive platform and increase wallet share as cybersecurity challenges expand amid the growing threat environment, which has been further complicated by artificial intelligence [2].

Cantor Fitzgerald, another analyst firm, has reiterated its Overweight rating on Zscaler, maintaining a price target of $340. The firm expects accelerated billings in the second half of the year, driven by the growing adoption of Zscaler’s cloud security and data protection solutions [3].

The consensus price target for Zscaler (ZS) stock is $303.66, based on the ratings of 33 analysts, with the high being $385 issued by Wells Fargo and the low being $215 issued by Roth Capital [3].

Zscaler is set to report its earnings after the market close, which could provide further insight into the company's financial health and growth prospects.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP0JY:0-zscaler-shares-climb-after-bullish-morgan-stanley-call/
[2] https://www.investing.com/news/analyst-ratings/morgan-stanley-upgrades-zscaler-stock-to-overweight-on-sase-market-potential-93CH-4218621
[3] https://www.benzinga.com/quote/ZS/analyst-ratings