Analyst Raises Cybersecurity Stock Targets Following Massive Russian Hack

Last week, Russian hackers gained access to the U.S. Treasury and other government agencies and major U.S. enterprises via a breach of SolarWinds Corp SWI’s Orion network monitoring product.

Some experts have called the attack one of the worst in U.S. history, but Bank of America analyst Tal Liani said Tuesday it could also create an opportunity for cybersecurity stocks.

“In our view, the breach underscores the importance of continued cyber security investment and should drive continued spending acceleration in 2021,” Liani wrote in a note.

Related Link: New Revelations Suggest Russian Hack Of US Agencies 'Very Possibly The Worst Ever'

Following the attack, the U.S. National Security Agency released a memo encouraging companies and government agencies to make sure to lock down endpoint systems, beef up security on systems utilizing on-premise identity and federation services and enforce privilege access security protocols.

Raising Targets: Liani raised his price targets for the following stocks as potential beneficiaries of a heightened focus on enterprise cybersecurity spending:

• Crowdstrike Holdings Inc CRWD, Buy rating, price target raised from $198 to $245.
• Palo Alto Networks Inc PANW, Buy rating, price target raised from $330 to $415.
• Cyberark Software Ltd CYBR, Buy rating, price target raised from $120 to $170.
• FireEye Inc FEYE, Neutral rating, price target raised from $15.50 to $22.
• Zscaler Inc ZS, Buy rating, price target raised from $185 to $235.

Benzinga’s Take: Last week, Wedbush estimated top cybersecurity companies will compete for a $200 billion growth opportunity in cloud security over the next five years. The recent cyberattack is likely better than any sales pitch these companies could make to their clients emphasizing the importance of keeping their networks secure.