Cybersecurity Expert Favors FireEye, CyberArk Over Palo Alto
Chanin, manager of the only pure-play cybersecurity ETF currently trading on the NYSE Arca, discussed some of the funds largest holdings.
Chanin feels the cybersecurity sector is a space filled with a lot of investor confusion; people are not yet familiar with this relatively new group. Among the names his PureFunds ISE Cyber Security ETF -- appropriately tickered "HACK" -- holds, Chanin discussed several of the hottest names: FireEye Inc (NASDAQ: FEYE), CyberArk Software Ltd (NASDAQ: CYBR) and Palo Alto Networks (NASDAQ: PANW).
The fund manager called FireEye "a front page name" and suggested the stock had earlier in 2015 "gotten a little ahead of itself." Recently down from a 52-week high at $51.87 at the end of February, Chanin now believes the stock is "trading more inline with reality."
Noting the recent number of high-profile hacks and cybersecurity threats, Chanin suggested companies "are hiring FireEye...something which could certainly help the stock moving forward."
Chanin next described the PureFunds ISE Cyber Security ETF's largest holding, CyberArk. He feels the company saw a lot of "fanfare around the IPO." Chanin believes CyberArk "benefited from the timing of its IPO" as investors were looking to deploy money in cyber security. He feels the recent public offering has kept CyberArk shares "on the front pages."
Although still "an integral provider within the space," Chanin concluded Palo Alto Networks "does not have the ability to move the needle as much as CyberArk or FireEye."
Shares of FireEye, CyberArk and Palo Alto were trading mixed on Wednesday.
FireEye shares last traded at $43.93, up about 1 percent, shares of Palo Alto were down 0.2 percent to $154.01 and shares of the laggard, CyberArk, were trading down about 1.4 percent to $65.47.
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