Zscaler, Inc. (ZS) Acquires Red Canary; Evercore ISI and Cantor Fitzgerald Maintain Bullish Stance
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On July 23, 2025, Evercore ISI reiterated its 'Buy' rating on Zscaler, Inc. (NASDAQ:ZS) with a $290 price target. A few days later, on August 5, 2025, Cantor Fitzgerald also maintained its 'Buy' rating with a $340 price target. These bullish ratings follow the company's acquisition of Red Canary, a leader in AI-driven threat management. The acquisition was announced on August 1, 2025.
While Red Canary will initially operate as a separate unit, it will integrate its agentic AI technology with Zscaler, Inc. (NASDAQ:ZS)'s Data Fabric for Security. The result of this integration will be the industry's most comprehensive Security Operations Center solutions. Relying on 500 billion daily transactions on the Zscaler Zero Trust Exchange, the integrated platform is expected to enhance detection, investigation, and response times. It will also unify security operations for customers and partners globally.
With its global Zero Trust cloud security platform, Zscaler, Inc. (NASDAQ:ZS) enables secure user, device, and application connectivity, preventing cyberattacks and data loss. It is included in our list of the hot stocks to buy.
While we acknowledge the potential of ZS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Best AI Stocks to Buy Under $3 and Bill Ackman Stock Portfolio: Top 10 Stock Picks.
Disclosure: None.
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