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JPMorgan Starts Secureworks At Overweight, $18 Target

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With the development of the Counter Threat Platform [CTP], Secureworks Corp (NASDAQ: SCWX) has built “the right amount of technology” to drive a scalable and eventually profitable Managed Security Service [MSS] business for Enterprise customers, JPMorgan’s Sterling Auty said in a report.

Analyst Sterling Auty initiated coverage of the company with an Overweight rating and a price target of $18, saying that MSS was a large market that is witnessing increasing interest from enterprise customers.

The TAM

Secureworks addresses a market valued at $34B and growing at ~11 percent. Demand from enterprise customers has been on the rise owing to a dearth of cyber security talent [as evidenced from the +1M open security jobs globally] and the increased threat landscape, Auty commented. He added, “We believe this shift to MSS will continue just like the adoption of cloud compute platforms.”

Proprietary Technology

Secureworks’ Counter Threat Platform is a security management and analytics solution that intakes more than 160B events every day across over 130 different security products.

“We believe this real time data analysis, ticketing, and response platform is the cornerstone of what differentiates SCWX and allows for a scalable business model that can handle the needs of today’s biggest companies,” the JPMorgan report noted.

Auty further mentioned that Secureworks appears poised to achieve market-leading growth in revenue and profitability, which makes its stock “an attractive investment opportunity.”

Latest Ratings for SCWX

DateFirmActionFromTo
Dec 2018DowngradesOverweightEqual-Weight
Dec 2018DowngradesOutperformSector Perform
Dec 2018DowngradesOutperformNeutral

View More Analyst Ratings for SCWX
View the Latest Analyst Ratings

Posted-In: JPMorgan Sterling AutyAnalyst Color Long Ideas Initiation Analyst Ratings Trading Ideas

 

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