Brean Capital's Frank Longman: Here Are Cybersecurity Stocks With Technical Breakout Potential
In a report published Wednesday, Brean Capital analyst Frank Longman discussed the cybersecurity sector, noting that four names in the space are showing “pristine” intermediate-term trends.
According to Longman, the four best names in the group from a technical perspective include Fortinet Inc (NASDAQ: FTNT), Proofpoint Inc (NASDAQ: PFPT), Palo Alto Networks Inc (NYSE: PANW) and Imperva Inc (NYSE: IMPV).
Fortinet’s stock broke above a key support level of $39.90 back in late May and have been trading higher since. The stock hit a 52-week high of $50.31 and is up over 90 percent year-to-date. The stock has also seen support from bullish Wall Street analyst reports; most recently JP Morgan upgraded the stock in late July to Overweight from Neutral.
Proofpoint’s stock has seen support near the $55.50 level, despite Longman’s $68 price target. The stock traded as high as $72.70 in July and has since sold off and gravitating back to the key $55.50 level. The stock hasn’t benefited much from the Street, despite Wedbush’s initiation of coverage (June 24) with an Outperform rating, $79 price target and inclusion in the firm’s “Best Ideas List.”
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Palo Alto Networks has established a “key support” level between $150 to $160. According to the analyst, the chart indicates the stock “seems inclined to backfill to support” where investors may be inclined to buy the stock. The stock traded as high as $200.55 on the year (back in July) and has sold off since, despite Cleveland Research initiating coverage on the name with a Buy rating and $218 price target in mid-June.
Finally, Imperva’s stock reached its first “big support” level of $59.90 while its momentum carried the stock as high as $73.28. The analyst stated that the stock is sitting in a “decent position” given the recent breakout allows for a “massive” run to $117 per share with “reasonable” support through the $60s. Imperva recently impressed the Street with its second-quarter print (August 6) where it lost $0.08 per share (versus estimates of a $0.21 per share loss) while revenue of $53.478 million exceeded the $48.55 million analysts were expecting.
Latest Ratings for PANW
Jul 2015 | Cleveland Research | Initiates Coverage on | Buy | |
Jul 2015 | Deutsche Bank | Maintains | Buy | |
Jul 2015 | JP Morgan | Initiates Coverage on | Overweight |
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