Why Zscaler, Inc. (ZS)’s Price Cut Isn’t the Full Story

3 weeks ago 13

Rameen Kasana

Tue, May 5, 2026 astatine 12:38 PM CDT 2 min read

Zscaler, Inc. (NASDAQ:ZS) is among the best bundle infrastructure stocks to bargain now. On May 1, Citizens trimmed the terms people connected Zscaler, Inc. (NASDAQ:ZS) to $210 from $290 and reiterated an Outperform rating, arsenic reported by TheFly. A emergence successful concerns astir frontier AI-powered cyber risks has led to a crisp re-rating of cybersecurity valuations up of Q1 earnings, the steadfast said, adding that this comes contempt beardown request for zero-trust and SASE solutions. This signals imaginable risks successful exemplary behaviour and revised manufacture information highlighting existent information needs.

Back connected April 22, Morgan Stanley besides chopped the terms people connected Zscaler, Inc. (NASDAQ:ZS) to $155 from $200, portion downgrading the banal from Overweight to Equalweight. Just past year, the steadfast upgraded the institution successful anticipation of level expansion, positioning it to look arsenic a 3rd cardinal level vendor done the Red Canary acquisition, information security, and integer experience.

Rubrik (RBRK) Expands Cyber Resilience to Google Cloud SQL for Managed PostgreSQL Databases

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However, Morgan Stanley hasn’t yet seen beardown traction with Red Canary comparable to ZDX bookings, with its 80% YoY surge to $100 cardinal ARR. Although risks similar accrued contention exist, Zscaler, Inc. (NASDAQ:ZS)’s 53.78% upside imaginable and enactment from the bulk of analysts marque it 1 of the champion bundle infrastructure stocks to bargain now.

Zscaler, Inc. (NASDAQ:ZS) is simply a California-based unreality information institution that offers cyberthreat protection, information operations, and information information products. Founded successful 2007, the institution serves a divers scope of markets, including automotive, energy, fiscal services, and healthcare.

While we admit the imaginable of ZS arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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