Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Technology
REINHARDT KRAUSE

Cybersecurity Stocks: Palo Alto Downgraded; Wedbush Hikes Price Targets

Analysts are mulling where hot cybersecurity stocks go from here after a big run-up. Raymond James downgraded Palo Alto Networks on Monday while Wedbush raised its price targets on PANW stock and a few other companies.

As of the market open on Dec. 18, the IBD Computer Software-Security group ranked an No. 6 out of 197 industry groups tracked.

PANW stock has climbed 120% in 2023. Demand for SASE cloud services has played a role in boosting PANW stock.

Raymond James analyst Adam Tindle downgraded PANW stock to market perform on valuation.

Cybersecurity Stocks: Shift To Cloud Services

"To be clear, Palo Alto Networks is a great company, technology leader, execution has been stellar, and we don't fight investors that have a time horizon longer than our 12-month mandate. However, we believe the risk/reward in the stock is becoming less favorable," Tindle wrote.

Wedbush analyst Daniel Ives raised his price targets on Palo Alto Networks, Zscaler, Qualys, CyberArk, CrowdStrike Holding and Check Point Software Technologies.

"While the past year we have seen some ebbs and flows around deal flow the transformational shift to the cloud puts the cybersecurity sector in a enviable position over the coming year," Ives said in a report.

CRWD stock has advanced 147% this year. Zscaler stock has popped 98%.

CrowdStrike, Zscaler, and Qualys are members of the IBD 50 roster of growth stocks.

Meanwhile, Raymond James's Tindle upgraded Check Point to outperform.

On the stock market today, PANW stock dipped nearly 1% to 304.25 before the market open. CRWD stock advanced 2.9% to near 260. CHKP stock rose 0.8% to near 146.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.