Cyber security sector to benefit from increasing Federal budgets - Wedbush

Telos

30/08/2021 08:56

** Wedbush expects the cyber security sector to benefit as
the U.S. govt and firms shore up spending amid heightened threat
levels
    ** Expects cyber security budgets of companies to jump over
20% in 2021, sustaining into 2022, ahead of current Street
forecasts
    ** "The Street is underestimating the massive strength we
are seeing in the cyber security field combined with a federal
spending uptick that should be pronounced in the Sept qtr," says
Wedbush analyst Daniel Ives
    ** The U.S. govt said last week it would work with industry
to hammer out new guidelines to improve the security of the
technology supply chain  urn:newsml:reuters.com:*:nL1N2PW1YR
    ** Ives adds that it will specially benefit firms such as
Telos  TLS.O  and Palantir  PLTR.N 
    ** Fortinet  FTNT.O , Sailpoint  SAIL.N , Crowdstrike
 CRWD.O , Tenable  TENB.O , CyberArk  CYBR.O , Varonis  VRNS.O ,
Zscaler  ZS.O , and Palo Alto  PANW.N  will also benefit from
the current nature of cyber attacks - Ives
    ** Brokerage sees a $300 bln growth potential for cyber
security vendors in cloud security domain alone, as more firms
move their workload to the cloud in the coming years
    ** Raises PT on FTNT to $350 from $310, ZS to $320 from
$240, and CYBR to $200 from $160
    ** Separately, Ives also notes that the entire tech sector
has strong fundamentals on the horizon, and sees tech stocks to
up another 7%-10% for the rest of the year

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com;))