Zscaler (ZS) shares fell on Wednesday. Evercore ISI added the cybersecurity firm to its "Tactical Underperform" list. The company's fourth-quarter earnings report is scheduled for September 3. The stock declined 3.3% in premarket trading after the announcement.
Evercore analyst Peter Levine cited concerns about near-term issues. These issues include intensifying competition and potential disruptions in Zscaler's go-to-market strategy. Levine believes these factors could limit upside from upcoming results and the initial fiscal 2027 forecast.
Evercore's channel checks indicated continued pressure on fundamentals. They also noted softness in acquiring new logos. Evercore maintained its "In Line" rating on Zscaler's stock. The firm also maintained a $155 price target.