William Blair Previews Q4 Reports For Cyber Security Names, Remains Cautious On FireEye (FEYE)

Analyst Jonathan Ho’s top picks in Cyber Security ahead of Q4 reports are CyberArk (NASDAQ: CYBR), Check Point Software Technologies (NASDAQ: CHKP), and Palo Alto Networks (NYSE: PANW). He remains cautious on FireEye (NASDAQ: FEYE) saying “Based on our discussions with industry participants, we are generally more optimistic regarding Palo Alto Networks, Check Point Software, Proofpoint, and CyberArk. We continue to be more cautious on FireEye, where the company has recently launched new products and has taken actions to better stabilize the business.”

Ho comments further: “Following the past two quarters of challenging results across the cybersecurity space, we are more optimistic that companies have now, broadly speaking, reset growth expectations to more achievable levels. Based on our discussions with private companies, CIOs, and resellers, we believe spending levels generally increased in 2016, but not at the levels that security companies anticipated. The primary impacts have come from macro challenges, vendor spending consolidation, more strategic spending approaches, difficulty hiring and retaining IT security staff, and the shift of workloads to public cloud architectures.”

Summary of ratings are:

CYBR – Outperform
CHKP – Outperform
PANW – Outperform
FEYE – Market Perform


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