capital · May 21, 2026
Morgan Stanley Downgrades Zscaler Citing Modest Momentum From Red Canary Acquisition
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Morgan Stanley downgraded Zscaler stock 3 days ago while flagging limited platform expansion beyond ZIA and ZPA and slower-than-hoped traction from the Red Canary deal. The firm highlighted heavier SASE competition from Cloudflare and Netskope as additional pressure points. Field checks indicated a slowdown in new customer acquisition and concerns over Zscaler’s value versus price proposition. Zscaler Stock Jumps As Wall Street Resets Price Targets referenced the downgrade in the context of May 18 2026 analyst actions.
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