Jefferies analyst predicts continued success for high-growth cloud-based companies
- Jefferies analyst upgrades CrowdStrike and Zscaler stocks
- Preference for high-growth cloud-based companies with exposure to federal spending and vendor consolidation
- CrowdStrike well positioned to capture fed, vendor consolidation, and cloud tailwinds
- Zscaler best placed for the distributed and cloud-based world
- Fortinet stock downgraded due to expected headwinds
- CrowdStrike and Zscaler shares outperforming Fortinet
- CrowdStrike shares up 75% and Zscaler shares up 51% year to date
Factuality Level: 7
Justification: The article provides information about a Jefferies analyst’s ratings on cybersecurity stocks and their prospects. The information is based on the analyst’s note to clients and includes details about the analyst’s views on specific companies and their potential for growth. The article also mentions the performance of the mentioned stocks and compares them to an ETF and market indices. Overall, the article provides factual information about the analyst’s ratings and the performance of the stocks.
Noise Level: 6
Justification: The article provides information on the analysis and ratings of cybersecurity stocks by a Jefferies analyst. It mentions the analyst’s preference for high-growth cloud-based companies and their ability to withstand a challenging spending environment. The article also discusses the analyst’s upgraded view of CrowdStrike and Zscaler, as well as the downgrade of Fortinet. It provides some context on the performance of these stocks and mentions the delayed deals reported by Fortinet and Cloudflare. However, the article lacks in-depth analysis, scientific rigor, and evidence to support the analyst’s views. It also does not provide actionable insights or explore the consequences of the analyst’s ratings on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Cybersecurity sector
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the ratings changes made by a Jefferies analyst in the cybersecurity sector, specifically focusing on high-growth cloud-based companies. While there is no mention of an extreme event or its impact, the information provided is relevant to financial markets and companies in the cybersecurity sector.
Public Companies: CrowdStrike Holdings Inc. (CRWD), Zscaler Inc. (ZS), Fortinet Inc. (FTNT), Cloudflare Inc. (NET), ETFMG Prime Cyber Security ETF (HACK)
Private Companies:
Key People: Joseph Gallo (Analyst)
According to Jefferies analyst Joseph Gallo, CrowdStrike and Zscaler stocks are top plays in the rocky cybersecurity market. Gallo upgraded CrowdStrike’s stock to buy from hold, citing improved survey results and the company’s ability to capture federal spending, vendor consolidation, and cloud tailwinds. He also upgraded Zscaler’s shares to buy, noting their strong position in the distributed and cloud-based world. On the other hand, Gallo downgraded Fortinet’s stock to hold, expecting headwinds for the company. CrowdStrike and Zscaler shares have outperformed Fortinet so far this year, with CrowdStrike shares up 75% and Zscaler shares up 51% year to date.
