Morgan too recommends cybersecurity as an important sector for 2024.
I had made buy recommendations for FTNT and PANW in the last few days and Morgan’s price targets of $77 and $375 are very similar to mine, indicating there is still considerable upside left.
Of the others in the article. I like these stories.
Crowdstrike – CRWD $280 – The best player in endpoint security, first recommended in Sep 2023 at a price of $165. Given the run up, I was hesitant to add more or recommend at this price.
It’s growing at 33%, as fast as Sentinel One, (S) which is 1/4 its size, so clearly the growth momentum is still there. Wells Fargo has a $315 Price Target, and longer term the TAM (Total Addressable Market) is massive and growing over 25% per year.
It has gone up around $40 (16%) from the beginning of the year, Buy on Declines.
Sentinel One (S) Cyber Security, $24, BUY Price Target – $30.
Long term Over 20%. Small Company, Volatile
Sentinel is one the fastest growers in cyber security with 100% growth last year, and expected growth of 35 to 40 % for the next three years. Sentinel’s valuation should grow on its transition to profitability and free cash flow generation – there have significant improvements in margins. For now, one needs to be prepared for the volatility that comes with just $800Mn revenue and a $7Bn market cap. Given the depth of its products and scope for improvements this is worth investing in.
