In 2013 and into 2014, the absolute hottest subsector in the technology world was the security software group, and stocks soared to incredible heights on the hype and interest. But like all overhyped areas, when the air came out of the balloon, the stocks were absolutely hammered, and some still haven’t recovered. There is, however, one huge difference between this and other tech bubbles. Cybersecurity is more critical now and going forward than ever before, and some of the top companies remain cheap.
In a new research report, Stifel analysts recap their attendance at the Gartner Security and Risk Management Summit 2017, and one thing seems clear: Demand in almost every area of cybersecurity is strong, and the public cloud opportunities are big. Toss in big growth potential for privileged access management and endpoint detection and response, and the upside for investors is clearly there.
The Stifel analysts have numerous stock rated Buy, but here we focused on those the analysts feel have some of the biggest upside potential.
This company recently reported very solid earnings. Barracuda Networks Inc. (NASDAQ: CUDA) designs and delivers security and data protection solutions. The company offers cloud-enabled solutions that enable customers address security threats, improve network performance and protect and store their data.
Last year Barracuda launched its new Vulnerability Remediation Service, expanding its award-winning Barracuda Web Application Firewall product line further simplifying the way web application security is deployed and managed. The Vulnerability Remediation Service automates security policy enforcement, making application security easy for DevOps teams by reducing costs and complexities traditionally associated with auditing code or patching software.
The Stifel price target for the stock is $32, and the Wall Street consensus target is $29.29. The stock closed Monday at $22.29 a share.
This company had a red-hot initial public offering (IPO) in 2014 and the share price is down almost 15% in the past month but has rallied back smartly off the lows. CyberArk Software Ltd. (NASDAQ: CYBR) claims it is the only security company focused on eliminating the most advanced cyber threats — those that use insider privileges to attack the heart of the enterprise. The company proactively secures against cyber threats before attacks can escalate and do irreparable damage. It is estimated that at least 35% of the Fortune 100 and 17 of the world’s top 20 banks use the software to protect high value information assets, infrastructure and applications.
CyberArk is a pioneer of a new layer of IT security solutions that protect organizations from cyberattackers that have evaded the network perimeter. CyberArk’s solutions secure organization’s critical assets dubbed privileged accounts, which are the keys to databases, industrial control systems, servers and applications, all of which house sensitive data. CyberArk’s software is focused on protecting these accounts, which are highly targeted in cyberattacks to disrupt networks and/or steal sensitive info.
Stifel has a $62 price objective for the stock, while the consensus target price is $58.45. The shares closed trading on Monday at $48.97.