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Citi analyst Fatima Boolani said AI deployments are driving additional <a href="https://bitcomme.com/senator-bill-cassidy-discusses-proposed-1-5t-social-security-investment-fund/” title=”Senator Bill Cassidy discusses proposed $1.5T Social Security investment fund”>security investment.
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Citi raised its Okta price target to $215 from $205 but kept its ‘Neutral’ rating.
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Wells Fargo raised its FTNT price target to $160 from $135 but maintained an ‘Underweight’ rating
Cybersecurity stocks are facing a market disconnect. On one hand, you have share prices pulling back from recent highs, but analysts see signs that enterprise spending is gaining momentum.
On Thursday, Citi raised its targets on CrowdStrike (CRWD), Palo Alto Networks (PANW) and Zscaler (ZS), while Wells Fargo said channel checks pointed to improving demand heading into 2027.
CRWD stock and PANW have fallen more than 13% from their Oct. 6 record closes, while Fortinet has retreated from its Oct. 13 peak. ZS and OKTA remain well below their 2021 peaks, down 41% and nearly 28%, respectively.
The latest declines came amid a broader technology selloff and renewed concerns about competition. Cybersecurity stocks also came under pressure following reports that OpenAI was in early talks to acquire security startup Trail of Bits.
Analysts Bullish On Cybersecurity
Despite the pullback, Citi struck a constructive tone on cybersecurity spending, citing encouraging findings from its latest chief information officer survey.
According to The Fly, Citi analyst Fatima Boolani said cybersecurity spending trends have improved, with artificial intelligence (AI) deployments helping drive additional investment in security.
The brokerage raised its CrowdStrike, Palo Alto Networks and Zscaler stock price targets, maintaining ‘Buy’ ratings on all three. The brokerage also raised its target price for OKTA stock, but kept the rating unchanged at ‘Neutral’.
Wells Fargo also pointed to improving cybersecurity demand, with analyst Richard Poland raising FTNT stock price target to $160 from $135 while maintaining an Underweight rating
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Implied Move From Oct 14 Close |
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The brokerage said ten detailed discussions with channel partners and its reseller survey indicated that cybersecurity spending was gaining momentum heading into 2027, per TheFly. It also sees the firewall replacement cycle continuing, supported partly by pricing.
