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.
Price Chart
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
Consensus & Targets
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
| Date | Firm | Action | Rating | Price 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.
| Firm | Accuracy | Calls | Avg Return | vs 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
| Period | EPS Est. | EPS Range | Revenue | Revisions (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: 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.
Investment Themes
Documents Analyzed
Report based on filing metadata.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | Press Release | $162.60 $177.80 | ▲ +9.35% | ▲ +8.75% | $200.21 (+23.13%) |
Jul 28, 2026 9w ago | Press Release | $151.63 $168.42 | ▲ +11.07% | ▲ +7.69% | $200.21 (+32.04%) |
Jun 25, 2026 14w ago | 144 | $132.26 $139.70 | ▲ +5.63% | ▲ +4.36% | $200.21 (+51.38%) |
Jun 18, 2026 15w ago | Insider Cluster | $124.85 $146.43 | ▲ +17.28% | ▲ +16.75% | $200.21 (+60.36%) |
Jun 18, 2026 15w ago | Insider Cluster | $124.85 $146.43 | ▲ +17.28% | ▲ +16.75% | $200.21 (+60.36%) |
Jun 18, 2026 15w ago | Insider Cluster | $124.85 $146.43 | ▲ +17.28% | ▲ +16.75% | $200.21 (+60.36%) |
Jun 17, 2026 15w ago | 144 | $124.85 $146.43 | ▲ +17.28% | ▲ +16.75% | $200.21 (+60.36%) |
Jun 16, 2026 15w ago | 144 | $124.38 $146.43 | ▲ +17.73% | ▲ +16.41% | $200.21 (+60.97%) |
Jun 16, 2026 15w ago | 144 | $124.38 $146.43 | ▲ +17.73% | ▲ +16.41% | $200.21 (+60.97%) |
Jun 16, 2026 15w ago | 144 | $124.38 $146.43 | ▲ +17.73% | ▲ +16.41% | $200.21 (+60.97%) |
US Market Status
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