Zscaler, Inc. (NASDAQ:ZS) has recently been highlighted as one of the 10 Best Consensus Buy-Rated Stocks to Invest in. The company received an upgrade from Bernstein analyst Peter Weed on February 13, 2026, who raised Zscaler to an Outperform rating from Market Perform with a price target of $228. The main reason for the upgrade was attributed to the company’s valuation, with Bernstein referring to Zscaler as the “cheapest” cybersecurity vendor in the market. Despite expectations of slowing growth in the future, Zscaler is projected to continue acquiring new customers, albeit at a slower pace compared to previous years.
On the other hand, RBC Capital analyst Matthew Hedberg adjusted the price target for Zscaler to $250 from $290 on February 11, 2026. Despite the price target reduction, the company maintained an Outperform rating. RBC Capital cited negative investor sentiment towards software and expressed a preference for companies with a clearer path to AI monetization and consolidation across various sectors. The adjustment in price target was also influenced by significant multiple compression observed year-to-date.
In a strategic move to enhance its zero-trust capabilities, Zscaler announced the acquisition of SquareX on February 6, 2026. The acquisition aims to broaden Zscaler’s reach into browser security by introducing lightweight extensions across any browser, eliminating the need for third-party browsers. The deal was finalized on February 5, with financial terms remaining undisclosed.
Zscaler, Inc. specializes in cloud security solutions, offering a range of products including Zscaler Internet Access, Zscaler Private Access, Zero Trust Firewall, Cloud Sandbox, and Zero Trust Browser. While ZS presents potential as an investment opportunity, investors are encouraged to explore other AI stocks that may offer greater upside potential with reduced downside risk. For those interested in identifying undervalued AI stocks that could benefit from current market trends, a free report on the best short-term AI stock is available for review.
In conclusion, Zscaler continues to make strategic moves in the cybersecurity space, positioning itself as a key player in the industry. As the company navigates changes in growth projections and market sentiment, investors are advised to stay informed on developments within the sector to make well-informed investment decisions.
