Why Cybersecurity Software May Be the Hottest Area to Buy Now

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Okta

While probably not a household name, this company could be a target of private equity. Okta Inc. (NASDAQ: OKTA) is an independent provider of identity for the enterprise. Its Okta Identity Cloud platform provides identity management solutions that enable customers to secure their users and connect them to technology and applications. It also connects enterprises to their customers, employees, contractors and partners.

The product allows users to access a range of cloud applications, websites, mobile applications and service from various devices. Its platform is used by IT organizations to secure their enterprise and by developers to build customer-facing websites and applications.

Okta Identity Cloud consists of a suite of products to manage and secure identities. It offers a range of products, such as Adaptive Multi-Factor Authentication, Universal Directory, Lifecycle Management products, Single Sign-On, application program interface (API) Access Management and Mobility Management.

The $85 Deutsche Bank price target compares with the $86.11 consensus figure. The shares closed on Wednesday at $92.76, well above both targets.

Tenable

This company went public last summer and may be the hidden gem in the Deutsche Bank universe. Tenable Holdings Inc. (NASDAQ: TENB) engages in the development of security software solutions. It offers Cyber Exposure, which is a discipline for managing and measuring cybersecurity risk in the digital era. Its products include Tenable.io, Tenable.sc and Nessus Professional. The firm delivers solutions in the field of application security, cloud security, compliance, energy, finance, health care and retail.

Over 27,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than 50% of the Fortune 500, more than 25% of the Global 2000 and large government agencies.

Deutsche Bank has set a $40 price target on the shares. The consensus target was last seen at $37.86, and shares traded most recently at $32.18 apiece.

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Recently a stunning nine out of 10 critical infrastructure security professionals said their environments have been damaged by a cyberattack in the past two years. With that kind of cybersecurity risk, it is critical for companies to stay ahead of the game, and these four are at the forefront.