Oct. 20 at 5:45 PM
BofA analyst Tal Liani said in a note Monday that confidence in the networking and cybersecurity sectors “should continue to support strong momentum,” as spending on AI infrastructure and enterprise security remains robust.
“The networking and cybersecurity sectors continue to benefit from strong tailwinds,” Liani wrote, noting that shares of Cisco, Arista, and Ciena have risen 22%, 44%, and 164%, respectively, over the past 12 months, while cybersecurity peers CrowdStrike, Palo Alto Networks, and Zscaler have gained 57%, 11%, and 56%.
BofA said fundamentals in networking remain solid, driven by elevated spending on AI infrastructure, while cybersecurity growth is supported by expanding enterprise security budgets and ongoing technological evolution.
The bank raised its price targets for Palo Alto Networks (from
$215 to
$240), Zscaler (from
$340 to
$355), Ciena (from
$155 to
$200), and CrowdStrike (from
$470 to
$535),
$CSCO $AKAM $ANET $ZS $PANW