June 18 - Needham analysts see longer-term strength in integrated cybersecurity platforms, noting these vendors may offer more seamless protection and help customers trim overlapping tools, according to a Wednesday note to clients.
The firm reiterates Buy ratings on CrowdStrike (CRWD, Financial), CyberArk (CYBR, Financial), Varonis (VRNS, Financial) and Zscaler (ZS, Financial), with price targets of $530, $460, $60 and $350, respectively. Needham suggests that rising geopolitical uncertainty is likely to drive enterprises toward broader platform offerings as organisations aim to consolidate security suites.
Analysts point to innovations in pricing and packaging, such as CrowdStrike's Falcon Flex and Zscaler's Z-Flex, that may lower adoption hurdles and encourage existing customers to expand use. They believe platform vendors can deliver more durable growth through tighter integrations and deeper visibility across attack surfaces, which may appeal to C-suite decision-makers prioritising cybersecurity spend.
Shares of CrowdStrike climbed about 3% to a new 52-week high on Tuesday, reflecting investor appetite for platform-centric names marketwatch.com. Other stocks were mostly steady, trading within narrow ranges. The note underscores Needham's conviction that durable growth prospects and strategic positioning could support these cybersecurity leaders over the medium to long term.
