ZS Zscaler, Inc.

BULLISH Impact: 3/10 ANALYST-UPGRADE
Processed 4d 12h ago SEC analyst-ZS-guggenhe-20260601
Guggenheim double upgrade: Neutral → Buy

Price Chart

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Executive Summary

Guggenheim double upgraded Zscaler from Neutral to Buy with a $214 price target, implying 53% upside from the current $139.73. This rare two-notch upgrade aligns with a strongly bullish consensus of 77.6% Buy ratings across 58 analysts. Guggenheim's 52% accuracy on 1,149 calls and 5.1% average return places it mid-tier among covering firms, but the PT is above the mean consensus of $194.46. The 30-day momentum shows 2 upgrades and 1 downgrade, with stable EPS revisions. Insiders sold ~$1.4M in March but no recent activity. Institutional flows are mixed: Morgan Stanley added while Two Sigma, BAC, and UBS trimmed. Short interest is exceptionally high at ~62.9% of float, creating a sharp divergence with the bullish analyst signal. Traders should watch for a catalyst to break the short overhang; the upgrade alone may spark a squeeze on volume.

Impact Score

Base Score
2/7
LLM Adjustment
+1
Final Score
3/10

Consensus & Targets

Buy / Strong Buy
45 (78%)
Hold
13
Sell / Strong Sell
0
Total Analysts
44
Mean PT
$194.46
Median PT
$195.00
High PT
$250.00
Low PT
$145.00
Current Price
$139.73
Implied Upside
+39.2%

Of 58 analysts covering ZS, 45 rate it Buy (77.6%), 13 Hold (22.4%), and 0 Sell. The consensus is strongly bullish, and Guggenheim's upgrade aligns with the prevailing view.

The mean price target is $194.46 (39.2% upside), median $195, high $250, low $145. Guggenheim's $214 target is above the mean and median, indicating above-consensus conviction. The current price of $139.73 offers 53% upside to Guggenheim's target.

Recent Analyst Activity

DateFirmActionRatingPrice Target
2026-06-01 Guggenheim upgrade Buy
2026-05-28 Wells Fargo maintain Overweight $180.00
2026-05-27 UBS maintain Buy $225.00
2026-05-27 B. Riley Securities maintain Buy $215.00
2026-05-27 Citigroup maintain Buy $175.00
2026-05-27 Truist Securities maintain Buy $200.00
2026-05-27 BMO Capital maintain Outperform $178.00
2026-05-27 Stephens & Co. maintain Overweight $200.00
2026-05-27 Morgan Stanley maintain Equal-Weight $145.00
2026-05-27 Barclays maintain Overweight $170.00

Over the past 30 days, ZS has seen 2 upgrades and 1 downgrade. EPS revisions for the current quarter show 0 upward and 1 downward revision; for the next fiscal year, 2 up and 2 down, indicating a mixed outlook. Estimates are mostly stable.

Firm Track Record — Guggenheim

Guggenheim accuracy: 52% on 1149 calls | avg return: 5.1%

Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 15 firms with ≥5 scored calls.

FirmAccuracyCallsAvg Returnvs Average
Stephens & Co. 100% 3/3 19.8% top tier
Truist Securities 100% 2/2 1.9% top tier
Loop Capital 80% 4/5 10.8% top tier
Barclays 73% 8/11 4.2% top tier
Baird 71% 5/7 8.8% top tier
Stifel 71% 5/7 1% top tier
Bernstein 67% 2/3 -18.5% top tier
Mizuho 64% 7/11 -2% top tier
BMO Capital 63% 5/8 12.1% top tier
Wedbush 60% 3/5 5% above average

Guggenheim's 52% accuracy on 1,149 calls ranks in the middle compared to peers. Top-tier firms covering ZS include Stephens & Co. (100% on 3 calls), Truist (100% on 2), Loop Capital (80% on 5), and Barclays (73% on 11). Bottom-tier by accuracy include Mizuho (64% on 11) and Bernstein (67% on 3). Guggenheim's average return of 5.1% is moderate.

Earnings Estimates

PeriodEPS Est.EPS RangeRevenueRevisions (7d)
0q $1.09 $1.08 — $1.16 $877.6M ↑0 ↓0
+1y $4.60 $3.96 — $5.42 $3.9B ↑0 ↓0
+1q $1.08 $0.91 — $1.16 $926.2M ↑0 ↓0
0y $4.13 $4.10 — $4.33 $3.3B ↑0 ↓0

Cross-Platform Signals

Insider Trades (90d)
0 buys / 5 sells
Institutional
TWO SIGMA INVESTMENTS, LP — trim (-63.9%)
Institutional
NORGES BANK — new
Institutional
MORGAN STANLEY — add (25.4%)
Short Interest
Short: 9,724,771 | Exempt: 772,632 | TRF Vol: 15,460,957 | Short Ratio: 62.9% | Off-exchange volume (dark pool + OTC)

Insider trades: All five reported insider transactions in March 2026 were sells totaling ~$1.4M, including sales by CEO Geller and CFO Chaudhry, but these are not recent (last 3 months ago). No congressional activity. Institutional changes are mixed: Morgan Stanley added (+25.4%), Norges Bank new position, while Two Sigma (-63.9%), Bank of America (-52.9%), and UBS (-49.8%) trimmed. Short interest is extremely high at ~62.9% of float, creating a significant divergence with the bullish analyst action. This short squeeze potential could amplify any positive catalysts.

Actionable Insight

The Guggenheim double upgrade and above-mean price target signal renewed conviction in ZS, but the high short interest and mixed institutional flows warrant caution. Traders should watch for a catalyst to break the short overhang; the upgrade alone may trigger a squeeze, but only if accompanied by volume.

Documents Analyzed

Report based on filing metadata.

15 reports for ZS
Performance horizon
60% Hit rate 3 of 5 directional calls best @ T+5▲ +6.80%Apr 22, 2026
Filters
Rows
Reports for ZS — sortable, filterable
Type Now
Jun 1, 2026
4d ago
ANALYST-UPGRADE
BULLISH ★ 3/10
awaiting T+5
May 31, 2026
5d ago
ANALYST-UPGRADE
BULLISH ★ 2/10
$232.67 $229.12▼ −1.53%▼ −2.86%$130.78 (−43.79%)
May 27, 2026
9d ago
ANALYST-DOWNGRADE
BEARISH ★ 5/10
awaiting T+5
May 26, 2026
10d ago
8-K
MIXED ★ 6/10
$126.17 $134.28▲ +6.43%▲ +5.96%$130.78 (+3.65%)
May 22, 2026
14d ago
ANALYST-DOWNGRADE
BEARISH ★ 3/10
$142.00 $134.27▲ +5.44%▲ +5.50%$130.78 (+7.90%)
May 21, 2026
15d ago
Press Release
BULLISH ★ 6/10
awaiting T+5
May 19, 2026
17d ago
Press Release
NEUTRAL ★ 4/10
awaiting T+5
May 18, 2026
18d ago
ANALYST-UPGRADE
BULLISH ★ 3/10
awaiting T+5
May 9, 2026
27d ago
ANALYST-DOWNGRADE
BEARISH ★ 3/10
$121.25 $134.28▼ −10.75%▼ −7.56%$130.78 (−7.86%)
May 7, 2026
29d ago
Press Release
NEUTRAL ★ 3/10
$152.03 $152.43▲ +0.26%▼ −1.24%$130.78 (−13.98%)
Showing 10 of 15

US Market Status

Market Closed — Opens Mon (36h 25m)

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