Sep. 17 at 11:49 PM
Cybersecurity stocks have rallied strongly this year as investors anticipate increased spending to protect companies from rising threats linked to artificial intelligence. However, Bernstein analyst Peter Weed believes many of the sector’s leading names may have limited room for further gains after their strong performance.
Zscaler has been a notable laggard in the cybersecurity rally, but Weed has an outperform rating on the stock and sees potential for it to catch up. He argues that the company could benefit from continued demand for cloud security and zero-trust solutions as organizations expand their AI infrastructure and face increasingly sophisticated cyber threats.
Zscaler shares rose 3.1% on Thursday, while other cybersecurity names posted mixed moves. Cloudflare gained 2.9%, CrowdStrike rose 1.8%, Okta advanced 1.0% and Fortinet added 0.5%. Palo Alto Networks edged down 0.2%, while SentinelOne was little changed.
$ZS $PANW $OKTA $S $NET