KeyBanc reduced Zscaler’s price target amid widening IT budget disparities and shifting AI spending priorities.
KeyBanc lowered its price target for Zscaler (ZS) to $176 from $190 on June 25, 2026, while retaining an Overweight rating. The firm cited a growing divide in IT budgets, with AI and AI-readiness spending gaining priority among enterprises.
Earlier in June, Guggenheim upgraded Zscaler to Buy with a $214 target, calling it a category leader in a high-growth market. Last month, Wells Fargo trimmed its target to $180 from $210, citing near-term headwinds but expecting clarity from an upcoming Zenith update.
Zscaler remains a key player in cloud security, with its Zero Trust model seen as increasingly relevant in the AI era.