From Yahoo Finance: 2025-05-28 21:38:00

Zscaler, Inc. (NASDAQ: ZS) announced the acquisition of Red Canary on May 27, 2025, to enhance its AI-powered security with MDR solutions. CEO Jay Chaudhry stated the move accelerates their vision of an AI-powered SOC. Investor sentiment is positive, with analysts raising price targets and maintaining confidence in the company’s role in enterprise cybersecurity.

The acquisition will merge Zscaler’s cloud-scale data fabric and global threat intelligence with Red Canary’s expertise in threat investigation. Zscaler has also invested in tools like Risk360 and Exposure Management, signaling a shift towards a fully integrated Security Operations Center.

Analysts have raised price targets and maintained confidence in Zscaler, Inc. (NASDAQ: ZS) following the acquisition of Red Canary. Cantor Fitzgerald raised its price target to $275, while Stephens & Co. reiterated an Overweight stance. The company’s growing role in enterprise cybersecurity is a key driver of investor sentiment.

Read more: Zscaler, Inc. (ZS) Expands AI Security Capabilities by Acquiring Red Canary Deal