Morgan Stanley Names Favorite Cybersecurity Stock

Cybersecurity stocks FEYE, PANW, and FTNT were on analysts' radars

by Josh Selway

Published on Oct 8, 2018 at 10:20 AM
Updated on Oct 8, 2018 at 10:20 AM

Cybersecurity stocks FireEye Inc (NASDAQ:FEYE), Palo Alto Networks Inc (NYSE:PANW), and Fortinet Inc (NASDAQ:FTNT) all just received a fresh round of analyst attention. Below we'll take a quick look at how shares of FEYE, PANW, and FTNT are trading today.

Starting with FireEye, Wedbush raised its price target to $18 from $16, citing a seemingly strong response from customers to the company's new subscription model. The brokerage firm did acknowledge that FEYE's competitive advantage remains challenged, however. Most covering analysts remain on the fence, with 10 "hold" ratings compared to nine "buy" or "strong buy" recommendations.

The equity has been trending higher since a mid-August low of $14.20, crossing back above the 200-day moving average last month, though today it's down 2.2% at $16.99. The shares are now bumping up against their year-over-year breakeven level near $18.

Turning to PANW, Morgan Stanley named the stock its top pick in the security sector, saying that the company's growth potential is not reflected in its current price. As such, it raised its price target to $276 from $262, well above the equity's Sept. 13 record high. The shares were last seen slightly higher at $216.71, sporting a year-over-year advance of 46%.

Interestingly, options traders recently have preferred Palo Alto Networks puts over calls. This is according to the stock's 10-day put/call volume ratio of 1.11 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 86th annual percentile.

Lastly, Morgan Stanley also weighed in on Fortinet, boosting its price target to $88 from $67. The vast majority of analysts still have "hold" ratings on FTNT, even though it's more than doubled over the past year. The stock was last seen down 0.5%, at $85.66.

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