Price Chart

Executive Summary

Evercore ISI Group cut Zscaler (ZS) to In-Line from Outperform and slashed its price target 31% from $225 to $155, the lowest on the street, on the same day as the company's earnings release. The firm has a 59% accuracy rate on 2,664 total calls, a middling track record. The broader consensus remains overwhelmingly bullish — 81% of 58 analysts rate ZS a Buy (15 Strong Buy, 32 Buy, 11 Hold). The new $155 target sits 30.6% below the $223.61 mean and implies 16% downside from the current $184.60. Despite this bearish call, near-term EPS revisions have surged: 40 upward revisions for the current quarter versus zero downward in the last 30 days. Insider sales in March and a 68.5% short ratio align with the bearish view, but institutional activity is mixed (large trims by Two Sigma and BofA alongside fresh buys from Norges Bank and Morgan Stanley). The convergence of a low-ball target, high short interest, and rising estimates on earnings day creates a high-conviction setup for a potential short squeeze.

Impact Score

Consensus & Targets

Out of 58 analysts covering ZS, 15 rate it Strong Buy, 32 Buy, 11 Hold, and 0 Sell or Strong Sell. That translates to 81% Buy calls, reflecting a heavily bullish consensus despite recent downgrades.

Current price is $184.60. The mean price target is $223.61, median $210, high $330, and low $155 (Evercore's new PT). Implied upside to the mean is 21.1%. Evercore's PT sits at the extreme low end, 30.6% below the mean, making it the most bearish analyst on the street.

Recent Analyst Activity

In the last 30 days, analyst activity includes 1 upgrade (B. Riley from Neutral to Buy, PT $225 on May 18) and 1 downgrade (Evercore today). EPS revisions for the current quarter show 40 upward and 0 downward revisions in the last 30 days — a strong positive trend. For the next fiscal year, revisions are roughly flat (2 up, 2 down).

Firm Track Record — Evercore ISI Group

Evercore ISI Group accuracy: 59% on 2664 calls | avg return: 4.6%

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

Evercore ISI Group has a 59% accuracy rate on 2,664 scored calls with an average return of 4.6%. Among firms covering ZS, top-tier performers include Stephens & Co. (100% on 3 calls, avg return +19.8%), Truist Securities (100% on 2 calls, +1.9%), and Loop Capital (80% on 5 calls, +10.8%). Evercore's accuracy is near the median and below these top performers.

Earnings Estimates

Next earnings: May 27, 2026

Cross-Platform Signals

Insider trades: In March 2026, multiple C-suite insiders sold shares, including EVP Rich Michael ($493K) and CFO Geller ($321K). While these are sales, they occurred two months prior and are not cluster trades. Short interest is elevated at 68.5% of volume, indicating heavy short positioning. Institutional activity is mixed: Two Sigma trimmed 63.9%, BofA trimmed 52.9%, UBS trimmed 49.8%, but Morgan Stanley added 25.4% and Norges Bank opened a new $79.8M position. No congressional trades. The bearish analyst call and high short interest converge, but the strong upward EPS revisions diverge, creating a tension that could resolve on earnings.

Investment Themes

Documents Analyzed

Report based on filing metadata.

US Market Status