KeyBanc Just Upgraded Its Price Target on Zscaler Stock. Here's Why.

Shares of ServiceNow (NOW), Zscaler (ZS), SentinelOne (S), Asana (ASAN), and Elastic (ESTC) surged after strong earnings and AI-driven growth reports. Salesforce, CrowdStrike, and Okta also showed AI-related revenue increases, easing investor concerns about AI disruption. SentinelOne's volatility highlights market sensitivity to AI trends.

Nvidia reported $96.2B revenue, up 106% YoY, confirming AI spending growth. CrowdStrike and Okta saw revenue increases of 26% and 11%, respectively, with both raising outlooks. Cybersecurity stocks rose as AI expansion increases demand for security. Palo Alto, Zscaler, and SentinelOne also gained.

Zscaler's stock rose 8.7% after JPMorgan increased its price target to $215, maintaining an Overweight rating. Other analysts also raised targets, citing leadership in SASE and a discount to peers. The broader market and positive tech sector sentiment supported the move. Zscaler's Q4 earnings report is expected to show growth.

Stifel Nicolaus analyst Adam Borg maintained a Buy rating on Zscaler (ZS) with a $200 price target. The company reported Q4 revenue of $850.48M and a GAAP net loss of $13.88M, compared to $678.03M revenue and $4.13M loss a year ago. Analysts' consensus is Strong Buy with a $197.42 target.

TD Cowen raised its Zscaler (NASDAQ:ZS) price target to $200 from $180 and kept a Buy rating, citing strong security demand. The stock trades at $183.60. TD Cowen expects in-line or better Q4 FY2026 results ahead of the earnings report, supported by 25% revenue growth over 12 months and 77% gross margins.

CrowdStrike and Palo Alto Networks hit record highs Monday, each up more than 5% after Black Hat discussions on AI agents changing the threat landscape. BTIG raised its Palo Alto price target to $380, about 4% upside, and the stock traded above it at $381.70. Tenable and Rubrik rose over 7%. No earnings were reported.