Market Overview

Brean Capital's Frank Longman: Here Are Cybersecurity Stocks With Technical Breakout Potential

Share:
Brean Capital's Frank Longman: Here Are Cybersecurity Stocks With Technical Breakout Potential

In a report published Wednesday, Brean Capital analyst Frank Longman discussed the cybersecurity sector, noting that four names in the space are showing “pristine” intermediate-term trends.

According to Longman, the four best names in the group from a technical perspective include Fortinet Inc (NASDAQ: FTNT), Proofpoint Inc (NASDAQ: PFPT), Palo Alto Networks Inc (NYSE: PANW) and Imperva Inc (NYSE: IMPV).

Fortinet’s stock broke above a key support level of $39.90 back in late May and have been trading higher since. The stock hit a 52-week high of $50.31 and is up over 90 percent year-to-date. The stock has also seen support from bullish Wall Street analyst reports; most recently JP Morgan upgraded the stock in late July to Overweight from Neutral.

Proofpoint’s stock has seen support near the $55.50 level, despite Longman’s $68 price target. The stock traded as high as $72.70 in July and has since sold off and gravitating back to the key $55.50 level. The stock hasn’t benefited much from the Street, despite Wedbush’s initiation of coverage (June 24) with an Outperform rating, $79 price target and inclusion in the firm’s “Best Ideas List.”

Related Link: New Opportunities In Cybersecurity

Palo Alto Networks has established a “key support” level between $150 to $160. According to the analyst, the chart indicates the stock “seems inclined to backfill to support” where investors may be inclined to buy the stock. The stock traded as high as $200.55 on the year (back in July) and has sold off since, despite Cleveland Research initiating coverage on the name with a Buy rating and $218 price target in mid-June.

Finally, Imperva’s stock reached its first “big support” level of $59.90 while its momentum carried the stock as high as $73.28. The analyst stated that the stock is sitting in a “decent position” given the recent breakout allows for a “massive” run to $117 per share with “reasonable” support through the $60s. Imperva recently impressed the Street with its second-quarter print (August 6) where it lost $0.08 per share (versus estimates of a $0.21 per share loss) while revenue of $53.478 million exceeded the $48.55 million analysts were expecting.

Latest Ratings for PANW

DateFirmActionFromTo
Aug 2020BTIGUpgradesNeutralBuy
May 2020Credit SuisseMaintainsNeutral
May 2020Piper SandlerMaintainsOverweight

View More Analyst Ratings for PANW
View the Latest Analyst Ratings

 

Related Articles (PANW)

View Comments and Join the Discussion!

Posted-In: Brean Capital Cybersecurity Frank longmanAnalyst Color Long Ideas Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
UBERRBC CapitalMaintains50.0
UBERMizuhoMaintains42.0
WIXJMP SecuritiesMaintains363.0
UBERBarclaysMaintains43.0
CVIJP MorganInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com