Skip to main content

Market Overview

Goldman Is Buying Secureworks, Sees 27% Upside

Goldman Is Buying Secureworks, Sees 27% Upside

Goldman Sachs' Gabriela Borges initiated Secureworks Corp (NASDAQ: SCWX) at Buy with a price target of $17.50.

"We believe Secureworks is uniquely positioned to gain [market] share at the intersection of two secularly growing verticals: security and IT outsourcing/managed service" Borges said. The analyst cited increased complexity of security infrastructures and a shortage of qualified professionals to manage them as the main catalysts.

Related Link: JPMorgan Initiates Coverage On Secureworks At Overweight, Announces $18.00 PT

Due to these reasons, the Goldman Sachs analyst saw "steady 20+ percent revenue growth while executing on operating leverage" with revenue targets of $420.50 million for 2017. Although the bank estimated EPS to be negative in 2017 and 2018 at $(0.61) and $(0.26) respectively, "we believe 20+ percent EBITDA margins are reasonable" in three to five years.

To reflect the long-term profitability track, Borges estimates a positive EPS of $0.05 for 2019.

Latest Ratings for SCWX

Jan 2021Morgan StanleyMaintainsEqual-Weight
Jan 2021Goldman SachsDowngradesNeutralSell
Dec 2020JP MorganDowngradesNeutralUnderweight

View More Analyst Ratings for SCWX
View the Latest Analyst Ratings


Related Articles (SCWX)

View Comments and Join the Discussion!

Posted-In: Gabriela BorgesAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Tech Trading Ideas

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
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.
Everything you need to know about the latest SPAC news.
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