Market Overview

KeyBanc Projects $30B Total Addressable Market For Carbon Black In Bullish Initiation

Share:
KeyBanc Projects $30B Total Addressable Market For Carbon Black In Bullish Initiation

Cybersecurity provider Carbon Black Inc (NASDAQ: CBLK) is a standout in a crowded segment, according to KeyBanc Capital Markets. 

The Analyst

KeyBanc's Rob Owens initiated coverage of Carbon Black with an Overweight rating and $29 price target.

The Thesis

Fresh off an early May initial public offering, Carbon Black's status in the cyber security market is due to a broad portfolio that addresses multiple use cases and needs, and its approach to data collection and analysis, Owens said in the initiation note.

The company's products connect through a unifying cloud platform called Cb Predictive Security Cloud, which is able to combine real-time insights and create new opportunities in adjacent services like vulnerability management and IT asset management, the analyst said. 

Carbon Black is better-positioned to address a large potential market opportunity over the coming years than competitors, Owens said.

Data from IDC suggests the core endpoint security market will total $8.3 billion by 2021, but the broader opportunity in cloud-based security software could expand the company's total addressable market to more than $30 billion, the analyst said. 

The stock looks attractive on the basis of Carbon Black's recurring revenue model; 88 percent of total revenue in 2017 was recurring in nature, Owens said. The company's ARR has been growing at a 51-percent compounded annual rate since 2015, while net renewal rates have stood above 90 percent in the same time period, he said. 

Price Action

Carbon Black shares were up 0.61 percent at the time of publication Tuesday. 

Related Links:

It's Time For Fintechs To Step Up Their Application Security Game

Cybersecurity Stocks Trade Lower After White House Eliminates Vacant Cyber Coordinator Position

Latest Ratings for CBLK

DateFirmActionFromTo
Aug 2019MaintainsOverweight
May 2019Initiates Coverage OnMarket Perform
Apr 2019Initiates Coverage OnOutperform

View More Analyst Ratings for CBLK
View the Latest Analyst Ratings

Posted-In: cloud cyber security KeyBanc Capital Markets Rob OwensAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (CBLK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
XELMaintains60.0
SOMaintains54.0
SREMaintains141.0
EXCMaintains56.0
ESMaintains77.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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

Mid-Day Market Update: Dow Falls Over 400 Points; T2 Biosystems Shares Plunge

Benzinga Pro Users Just Got That Much Better At Beating The Markets