Shares of Fortinet Inc. [ftnt], Palo Alto Networks Inc. [panw], and Verint Systems Inc.
are trading higher in Tuesday’s session after Goldman Sachs analyst Brian Essex initiated coverage of the cybersecurity names with buy ratings. He began coverage of Check Point Software Inc.
and Zscaler Inc.
at hold and established a sell rating on shares of SecureWorks Corp.
“Within our coverage universe, we prefer stocks of companies with favorable exposure to next-generation security, an ability to take share in key markets, a demonstrated ability to execute, and strong fundamentals with cash flow,” Essex wrote. “Although high growth software stocks have pulled back over the past few months, we believe the market will continue to reward high-growth share gainers in the market with a premium to peers.” The initiations come as the First Trust NASDAQ Cybersecurity ETF
has risen 27% so far in 2019. The S&P 500
is up 23% in that time.
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