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Stephens analysts see upside potential, ranging from 30% to 38%, for these 3 cybersecurity stocks.
Research firm Stephens initiated coverage of cybersecurity vendors in a note released late Monday even as their shares stutter amid the broader market downturn.
The brokerage initiated shares of Zscaler, Inc. (ZS), CyberArk Software, Inc. (CYBR) and SentinelOne, Inc. (S) with 'Overweight' ratings, The Fly reported. The firm's price targets for the shares are as follows:
Stephens' positive view on Zscaler is premised on its view that the company is the "pioneer and market leader" in delivering network security as a cloud-based service. The firm's analysts believe that Zscaler is well-positioned to be one of the at-the-scale companies that can grow its top line by about 20%.
On CyberkArk, Stephens said the company is one of the leaders in driving the move toward converged identity security platforms. The firm believes identity security will be one of the most attractive secular growth areas in security.
According to Stephens, SentinelOne has established a strong position in the next-generation endpoint market. The brokerage said the company has multiple growth drivers that will support over 20% revenue growth over the next few years.
Stephens said SentinelOne has made strong progress in improving profitability, and it is now at a "positive inflection point."
Retail traders concur with Stephens' assessment of Zscaler and CyberArk but did not share the brokerage's optimism regarding SentinelOne.
Stocktwits' retail community remained 'bullish' (67/100) on Zscaler stock, but the message volume on the stream was 'low.'
Retail sentiment toward CyberArk stock was also 'bullish' (59/100), yet the message volume stayed 'low.'
Conversely, retail sentiment toward SentinelOne stock remained 'neutral' amid 'extremely low' message volume.
SentinelOne has lost over 20% this year, while CyberArk and Zscaler have added 1.5% and 10%, respectively.
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