The analyst said this about recently reported earnings:
CyberArk reported strong first quarter revenues and earnings per share of $112.8 million and $0.9 per share versus Wall Street’s $109.8 million and $0.4. Second quarter guidance was soft. SaaS transformation gaining momentum; a solid pipeline and secular tailwinds should drive long-term growth. We remain positive on CyberArk’s platform and reiterated Buy.
BofA Securities lowered its $190 price target to $160. The $174.14 consensus target also compares to Friday’s $121.50 closing print for CyberArk Software stock.
This is a top Wall Street pick in the industry. Splunk Inc. (NASDAQ: SPLK) provides a software platform for collecting, storing, indexing, searching and analyzing machine-generated data, such as log files and configuration files, which are prevalent in every type of IT system, device and application.
Splunk technology is potentially applicable and disruptive in several market segments, including IT operations, security and compliance, and business intelligence. These market segments are collectively worth $28 billion today.
Wall Street analysts agree that the company offers the de facto standard for security information and event management. That is an area heavily focused on in the Biden executive order. Splunk also offers orchestration solutions for security operations, a fast emerging category of products.
The $180 BofA Securities price target compares to the slightly higher $189.69 consensus target. Splunk stock closed on Friday at $116.22.
This remains one of the hottest stocks and is a top pick at BofA Securities. Zscaler Inc. (NASDAQ: ZS) is a leader in the cloud-based Secure Web Gateway (SWG) market. These gateways help protect enterprise internet traffic, and there is a material market shift from legacy appliance-based approaches to cloud services. Zscaler’s products are uniquely architected to address the higher-growth cloud or software-as-a-service (SaaS) portion of the market, and Zscaler’s platform is designed to apply additional security features outside of SWG to all enterprise traffic over time.
The analysts love the company and said this when it reported back in February:
Zscaler reported one of its strongest quarters to date with revenue and billings of $157 million and $232 million beating Wall Street’s $148 million and $192 million Billings growth accelerated further to 71% year-over-year versus 41% year-over-year in fiscal 2020. Net retention rate ticked up to 127% from 116% in 2020. Accelerating sales investments in the second half on heels of significant investments in the fourth quarter and the first half of 2021should help offset difficult comps.
The BofA Securities has set a massive $260 price target, while the consensus target is $237.71. Zscaler stock closed at $165.34 on Friday.
Clearly the need for cybersecurity is increasing every year. These top companies offer investors solid ways to play the industry in a multitude of areas. Most importantly, they all trade at levels that offer solid entry points and have massive upside potential, in addition to being a very solid long-term aggressive portfolio.