Wedbush sees 'momentum' for cyber security stocks as threats grow

Telos

11/10/2021 12:42

** Wedbush raises Palo Alto Networks  PANW.K  PT to $600
from $470, says "backdrop is very bullish" for cyber security
stocks with robust Q3 earnings and deal momentum into 2022
    ** Says federal cyber security spending is up 20%-25% y-o-y
in 2021 with consistent growth expected in 2022 as Biden cyber
security standards and high-profile attacks (Colonial Pileline,
Solarwinds) accelerate larger deals
    ** Q3 federal deals stood out as more government agencies
are seeking protection in an increasingly dangerous cyber
environment - Wedbush 
    ** Says quarter-end checks were especially strong for
Tenable  TENB.O , CyberArk  CYBR.O , PANW as deal activity
appears to be tracking well ahead of expectations
    ** Other names seeing strong demand includes Varonis
 VRNS.O , Fortinet  FTNT.O , Zscaler  ZS.O , Telos  TLS.O ,
Sailpoint  SAIL.N 
    ** Wedbush sees strong deal flow around identity threat
detection, priveleged access management and endpoint security
within the cyber security field 
   ** Says 40% of U.S. workloads are currently on cloud today
and poised to hit 70% by 2025 
    ** Thinks there is a $200 billion growth opportunity in
cloud security alone "up for grabs" over the next few years

 (Reporting by Anisha Sircar)
 ((anisha.sircar@thomsonreuters.com))