Mizuho Upgrades Zscaler to Outperform Following Recent Stock Decline
Mizuho upgraded Zscaler (NASDAQ: ZS) to Outperform from Neutral on Dec 18, 2025, while setting a price target of $310 USD.
The firm cited an improved risk-reward profile after the stock fell 31% since October and 21% since recent fiscal first-quarter earnings.
Analysts noted Zscaler trades at a peak year-to-date EV-to-ARR discount relative to peers while maintaining a superior Rule of 50 score.
- The company reported solid fiscal first-quarter performance despite recent share price weakness.
- Fiscal second-quarter net new ARR guidance came in slightly below prior levels.
- The outlook did not include specific contributions from the Red Canary acquisition.
Mizuho remains confident in the positioning of Zscaler within the SASE and Zero Trust markets despite transparency concerns regarding organic growth.
Further details on the company are available in the ZS and ZS reports.
Financial analysis is provided in the ZS and ZS documents.
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