Wedbush: Cybersecurity Stocks Will Soar in 2021
Wedbush analyst Dan Ives believes that cybersecurity stocks will soar in 2021, according to MarketsInsider.
Ives believes that work-from-home policies will accelerate the need for the service. The recent SolarWinds attack that compromised divisions within the federal government and corporations like Microsoft only added to the growing trend. He forecasts a 20 percent "seismic increase" in cyber spending that will drive stocks up. Ives even went as far as to call it a "perfect storm of demand" for the industry.
He raised his price targets for several companies in the sector, such as Sailpoint Technologies (33 percent upside), Zix Corp (32 percent upside), Fortinet (22 percent upside), and Zscaler (21 percent upside).
"We believe there is a $200 billion dollar growth opportunity in cloud security 'up for grabs' over the next five years for those vendors that have the solution sets to protect critical cloud deployments and seamlessly work with on premise and public/ hybrid workloads through a unified and deep solution set," Ives said.
Currently, 33 percent of businesses are using cloud technology. Ives believes this figure could increase to 55 percent by 2022 as individuals grow more aware of cyber threats.
"While WFH applications remain front and center, the exploding endpoints and volume of data being accessed from remote employees have caught CIOs flat- footed to protect this next step of the cloud shift with cyber security names playing a vital role in this strategic endeavor over the coming year," Ives added.