Zscaler gets Outperform call with $175 target on 7.3x forward sales discount
Bernstein initiated coverage on Zscaler with an Outperform rating and $175 price target, noting the company trades at a 7.3x forward revenue multiple, 25% below cybersecurity peers. Analysts highlighted 26% year-over-year ARR growth and projected EBITDA breakeven by mid-2026 as key value drivers.
1. Bernstein Coverage Initiated
Bernstein launched coverage on Zscaler with an Outperform rating and a $175 price target, highlighting a forward revenue multiple of 7.3x, which sits roughly 25% below the average for leading cybersecurity vendors.
2. Growth and Profitability Outlook
The note underscores Zscaler’s 26% year-over-year ARR growth and forecasts adjusted EBITDA breakeven by mid-2026, citing expanding gross margins and accelerating enterprise adoption of its zero-trust platform as catalysts for valuation expansion.