Security actions set to gain strength as network breaches continue

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On Friday, Uber (UBER) said a recent security breach did not involve any leak of sensitive customer or driver data. Yet the fact that an Uber company (UBER) size can be hacked signals that network security is an issue that cannot be ignored by any organization.

It’s incidents like this that continue to provide opportunities for businesses in the cybersecurity industry. And the market is such that MKM Partners analyst Catharine Trebnick launched coverage of five major security companies with buy ratings on Friday: Fortinet (NASDAQ: FTNT), Zscaler(NASDAQ: ZS), Palo Alto Networks (NASDAQ: PANW), CyberArk (CYBR) and CrowdStrike Holdings (NASDAQ: CRWD).

In addition to putting a buy rating on Fortinet (FTNT), Trebnick has set a price target of $70 per share on the company’s stock. Trebnick said that in the current business environment, Fortinet (FTNT) has several competitive advantages that put it in a strong position in the security market.

Among those are a single “pane” that monitors network traffic across multiple devices, a broad product portfolio, and what Trebnick said is a path for Fortinet (FTNT) to reach $10 billion in revenue. invoicing by 2025.

Trebnick said Zscaler (ZS) presents “an attractive long-term growth opportunity” as it offers “seamless protection regardless of location, geography, office, home and/or public WiFI [networks]. Trebnick set a price target of $225 per share on Zscaler (ZS) stock, saying the company’s “competitive advantages are sustainable” and will see it grow revenue 30% year over year. the other in the foreseeable future.

For CyberArk (CYBR), Trebnick set a price target of $190 per share on the company’s stock and said its transition to a subscription business model “was ahead of plan” and that its annual recurring revenue growth was up. than its overall revenue growth rate. Trebnick added that with around 8,000 customers now, CyberArk (CYBR) is on track to grow to 20,000 customers in 2025.

For CrowdStrike (CRWD), Trebnick said the company has “one of the most comprehensive cloud-native platforms” in the cybersecurity industry. Trebnick said this allows CrowdStrike (CRWD) to go beyond endpoint security and into areas such as cloud security and identity protection.

In addition to setting a buy rating on CrowdStrike (CRWD), Trebnick has set a price target of $240 per share on the company’s stock.

Regarding Palo Alto Networks (PANW), Trebnick said General Manager Nikesh Arora “has been instrumental in Palo Alto Networks’ transition to SaaS. [software-as-a-service] based on a model based on next-generation cybersecurity. Trebnick said that with annual recurring revenue from next-generation security offerings reaching $1.9 billion in its most recent quarter, the company should be able to expand market share and gain revenue. cloud-based services. more popularity with businesses.

Trebnick also set a price target of $250 per share on shares of Palo Alto Networks (PANW).

Palo Alto Networks (PANW) shares ended the day in the red on Thursday as the company conducted a 3-for-1 stock split.


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