Cybersecurity firms SailPoint and Zscaler rise on Morgan Stanley upgrade; Fortinet slips on downgrade

SailPoint

02/09/2025 10:45

** Shares of cybersecurity firms SailPoint SAIL.O, and Zscaler ZS.O rise 2.62% and 2.29%, respectively, in premarket trading

** Fortinet's FTNT.O shares fall about 3%

** Morgan Stanley upgrades ratings on SAIL and ZS to "overweight" from "equal-weight"

** Brokerage says SAIL is making good progress in key areas like identity and data security, helped by its shift to cloud-based software and the chance to replace older systems

** MS says ZS could become a leading cybersecurity platform as it continues to grow and expand beyond traditional network protection

** Brokerage also downgrades FTNT to "underweight" from "equal-weight," citing that FTNT is expanding within its customer base, but a smaller firewall upgrade may lower future estimates

** Up to last close, stock of FTNT down ~17%, and ZS is up ~54% YTD

** As of last close, SAIL is down 10.26% since its market debut

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))