- Zscaler (ZS, Financial) is poised to acquire Red Canary, strengthening its position in the cybersecurity space.
- Analysts forecast a deal value between $800 million and $1 billion, with implications for competitive advantage.
- Market metrics suggest an "Outperform" rating and potential stock price upside in the coming year.
Zscaler Inc. (ZS) is making headlines with its strategic move to acquire Red Canary, a step expected to boost its managed detection and response capabilities significantly. With analysts estimating the acquisition to be valued between $800 million and $1 billion, this decision may compress margins but strategically positions Zscaler against prominent industry competitors like CrowdStrike and Palo Alto Networks.
Wall Street Analysts Forecast
The financial community offers a diverse range of predictions for Zscaler's market trajectory. According to one-year price targets from 41 analysts, Zscaler Inc (ZS, Financial) is projected to have an average target price of $244.99. The high estimate reaches $340.00, while the low estimate is $195.00. This average target suggests a potential downside of 3.85% from the current trading price of $254.79. For more comprehensive estimate details, visit the Zscaler Inc (ZS) Forecast page.
Furthermore, consensus from 47 brokerage firms positions Zscaler Inc (ZS, Financial) at an average brokerage recommendation of 2.0, which categorizes it under "Outperform." The brokerage recommendation scale spans from 1 to 5, with a rating of 1 indicating a Strong Buy and 5 suggesting a Sell.
Taking a broader perspective with GuruFocus estimates, the projected GF Value for Zscaler Inc (ZS, Financial) in the coming year is $296.24. This indicates a promising upside of 16.27% from the current valuation of $254.79. The GF Value represents GuruFocus' estimation of the stock's fair trading value, calculated through historical trading multiples, past growth, and future performance estimates. For an in-depth analysis, refer to the Zscaler Inc (ZS) Summary page.
