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Exane starts security software group with three Outperform ratings

Exane BNP Paribas earlier today initiated coverage of Palo Alto Networks (PANW), Datadog (DDOG) and Veeva Systems (VEEV) with Outperform ratings. The firm is positive on the companies’ market share positions, efficient sales models and high rate of product innovation. It also sees artificial intelligence as a tailwind for cybersecurity demand. Exane also put Neutral ratings on Zscaler (ZS), Dynatrace (DT), Samsara (IOT) and Crowdstrike (CRWD). It cites shifting sales strategies for Zscaler and Dynatrace, valuation for Samsara, and a lack of visibility for Crowdstrike for the ratings. Cloudflare (NET) was launched with an Underperform rating on potential downside risk to consensus estimates.

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