Technology

3 Security Software Stocks to Buy as IT Budgets Continue to Explode

There are a lot of things a company can cut back on in an effort to lower operating costs. One of the things that absolutely cannot be ignored is information technology (IT) security needs. Deutsche Bank attended the annual Black Hat security conference in Las Vegas, and one thing’s for sure. For the time being at least, budgets and wallets are wide open to spend on whatever is required to keep data safe and secure, as evidenced by the huge numbers CyberArk Software posted Tuesday after the close.
In a report, the Deutsche Bank team noted that this conference is more technical in nature, so many engineers are there evaluating the quality of the products. They also reported that there was a lot of focus on application security, as well as threat intelligence data and analysis, including log file indexing and analytics.

Three companies are the top picks at Deutsche Bank, and they all make solid sense for aggressive growth investors.

Palo Alto Networks

This company has been a momentum traders’ dream over the past two years. Palo Alto Networks Inc. (NASDAQ: PANW) is helping to lead a new era in cybersecurity by protecting thousands of enterprise, government and service provider networks from cyber-threats, and it boasted a staggering year-over-year billing growth. Unlike fragmented legacy products, its security platform safely enables business operations and delivers protection based on what matters most in today’s dynamic computing environments: applications, users and content.

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The Palo Alto Networks security platform has new features that were recently introduced that help security professionals overcome the distractions and time spent on problems caused by the overwhelming volume of alerts and manual processes associated with operating many discrete security products, and instead expand breach prevention capabilities and boost operational efficiency.

The Deutsche Bank team makes it clear that the feedback they got from the professional at the security conference was the most bullish on Palo Alto, and the company is gaining real traction with larger data centers firewalls.

Deutsche Bank has a $210 price target for the stock, and the Thomson/First Call consensus target is $193.20. The stock closed trading Tuesday at $173.93.

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