Ziff Davis reports Q1 2026 results this morning with a notable split in analyst conviction — one firm just lifted its target sharply higher while most of the Street remains parked on neutral.
The freshest and most striking signal comes from Susquehanna. Three days ago, analyst Shyam Patil raised his price target from $45 to $60 while maintaining a Positive rating — a 33% target increase on a stock currently trading at $43.31. That move stands well apart from the broader analyst pack. Citigroup and Barclays both raised targets in early March, reflecting a post-Q4 bounce in sentiment, but neither moved off neutral stances. The consensus mean target is $45.57, implying only modest upside from current levels. The divide matters: one analyst sees $60, the consensus sees $45, and a Q4 print in February sent the stock down 9% in a single session before a 40% recovery over the following five days.
Short interest is a genuine part of the story heading in. Nearly 10% of the free float is borrowed short — close to 3.95 million shares — with days to cover at 7.4, meaning it would take more than a week of average volume to unwind. That is not a casual hedge; it reflects a committed bearish view. What is notable is the direction: SI has fallen roughly 6% over the past month as the stock recovered off its February lows, and borrow conditions remain benign. Cost to borrow is running at just 0.47% annualised, and availability is comfortably loose, suggesting shorts are not under pressure despite the position size. The ORTEX short score of 57.5 is moderately elevated but has been largely stable over the past two weeks — no acceleration.
Options positioning offers little in the way of additional directional signal. The put/call ratio at 2.78 sounds alarming in isolation, but it is right in line with its 20-day average of 2.74. The z-score of just 0.32 confirms there has been no fresh surge in defensive positioning ahead of today's print — options traders are not scrambling to hedge.
The valuation setup gives the bulls something to point to. At an EV/EBITDA of around 5.3x on consensus estimates of roughly $368 million EBITDA, Ziff Davis trades at a meaningful discount to interactive media peers. The P/E of 8.3x on reported earnings sits well below the sector. Bears would argue that discount is warranted given the company's structurally challenged legacy digital media assets and limited revenue growth visibility. With a market cap of approximately $1.65 billion and an EPS surprise percentile that ranks only in the 20th percentile, the track record of beating estimates is thin.
Today's print is less a referendum on whether Ziff Davis is cheap — the multiple already reflects pessimism — and more a test of whether the revenue trajectory and forward guidance are consistent with Susquehanna's newly bullish case or with the neutral majority who see little reason to move.
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