Key TakeawaysZscaler (ZS) experienced a 10% decline to $193.05 despite receiving higher price targets from analysts.RBC Capital increased its price objective to $236 from $210 while maintaining its Outperform rating.Mizuho boosted its target to $220 from $210, also keeping an Outperform designation.The adjustments came after Ross Tackett replaced Mike Rich as Chief Revenue Officer.The company’s Investor Day is scheduled for October 6.Shares of Zscaler (ZS) tumbled 10% to $193.05 over the past week, despite receiving upgraded price objectives from two prominent Wall Street firms. The decline presents a sharp contrast to the optimistic sentiment expressed by analysts following an executive transition at the cloud security provider.Zscaler, Inc., ZSRBC Capital Markets boosted its price objective to $236 from a previous $210. The investment bank maintained its Outperform designation on the shares.Mizuho followed suit with a similar adjustment, raising its price objective to $220 from $210. The firm continues to rate the stock as Outperform.The catalyst for both upgrades centered on a shift in Zscaler’s executive leadership. Mike Rich departed from his Chief Revenue Officer position, citing personal considerations.Ross Tackett assumed the CRO responsibilities after previously leading worldwide sales operations and managing the Americas territory.Since May, Tackett has essentially overseen the sales operations. His professional history includes working with Rich at ServiceNow in previous roles.Wall Street CommentaryRBC Capital emphasized that the executive transition wasn’t connected to any conflict or operational concerns. The firm anticipates a seamless handoff without alterations to the company’s sales approach.Mizuho engaged in discussions with Zscaler executives. The firm reported that management stressed operational consistency, highlighting Tackett’s substantial role in developing the company’s financial projections.According to Mizuho, leadership deemed a formal guidance update unnecessary. This decision reflects Tackett’s integral involvement in crafting the outlook presented just three weeks earlier.Both investment firms attributed their increased price objectives partially to expanding valuation multiples among peer companies in the sector. Mizuho noted that Zscaler maintains strong positioning in the SASE and Zero Trust markets, notwithstanding heightened competitive pressures.Quarterly Performance and Additional Analyst ActivityThe upgraded price targets arrived on the heels of Zscaler’s fiscal 2026 fourth quarter financial results. The company reported revenue of $898.2 million, representing a 25% year-over-year increase and surpassing analyst consensus by approximately 2%.FBN Securities elevated its price objective to $190 following the quarterly report. JPMorgan maintained its $215 target while reaffirming an Overweight rating, observing that revenue and annual recurring revenue exceeded projections by a more substantial margin compared to earlier quarters.Stephens also adjusted its target upward to $225 in response to the financial results. Guggenheim retained its Buy rating with a $214 price objective after the CRO announcement.The company’s gross profit margin reached 77% over the trailing twelve months. Revenue expansion during the same timeframe registered at 25%.Based on InvestingPro data referenced in analyst reports, 36 analysts have increased their earnings projections for the upcoming period. The platform’s calculated fair value estimate for the company stands at $226.27.Rich will remain with Zscaler in an advisory role through December 2026. The company plans to conduct its Investor Day event on October 6.The post Zscaler (ZS) Stock Slides 10% as RBC and Mizuho Boost Price Targets Post-CRO Transition appeared first on Blockonomi.