Group 1 - The article initiates coverage on Fortinet, Inc. (NASDAQ: FTNT) with a Strong Buy rating and a price target of $148, highlighting its integrated and automated cybersecurity solutions across firewall, cloud, and endpoint [1] - While consensus anticipates a moderation in firewall growth, the analysis suggests a positive shift in margins and a mix change towards more profitable segments [1] - Moretus Research emphasizes a structured approach to equity research, focusing on companies with durable business models and mispriced cash flow potential, aiming to identify investment opportunities that can lead to asymmetric returns [1] Group 2 - The research methodology of Moretus Research is based on rigorous fundamental analysis and pragmatic valuation, tailored to each company's business model and capital structure [1] - The coverage tends to favor underappreciated companies undergoing structural changes or temporary dislocations, where disciplined analysis can yield significant investment returns [1] - Moretus Research aims to elevate the standards of independent investment research by providing actionable insights and a strong filter for relevant information in equity analysis [1]

Group 1 - Quantum eMotion Corp. has amended its stock option plan to increase the maximum number of common shares reserved for issuance from 15,000,000 to 24,750,000, which was approved by the Board and ratified by shareholders [1] - The amendment aims to clarify certain terms of the stock option plan and ensure compliance with TSX Venture Exchange policies [1] - The company is focused on developing quantum-secure technologies, particularly in the field of cybersecurity [2] Group 2 - Quantum eMotion targets high-value sectors including Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security Infrastructure, Classified Government Networks, and Secure Device Keying [3] - The company utilizes a patented Quantum Random Number Generator to enhance security for connected devices, leveraging the unpredictability of quantum mechanics [2]

🚨 Wedbush's Dan Ives: "We're just beginning this golden age for tech"@DivesTech says tech stocks could jump 10-15% in 2H 2025 thanks to the AI boom.He sees a 3-year bull run led by software, semis, and cybersecurity. https://t.co/UKAeXuMSh9 ...

Analyst Opinion - Wedbush analysts boosted CrowdStrike Holdings' price target [1] - CrowdStrike Holdings is considered the "gold standard" in the cybersecurity field [1]

Industry Overview - The cybersecurity market is projected to witness a CAGR of 12.63% from 2025 to 2030, driven by the rise of complex attacks such as credential theft and social engineering [2]. Company Analysis: Palo Alto Networks (PANW) - PANW is a leader in cybersecurity, offering solutions for network security, cloud security, and endpoint solutions, with a strong focus on next-generation firewalls and advanced threat detection technologies [4][5]. - The company has upgraded its Prisma Cloud platform with Prisma Cloud Copilot, a generative AI-powered assistant, enhancing user query responses [6]. - PANW's revenue growth rate has been in the mid-teen percentage range recently, down from mid-20s percentage in fiscal 2023, with Q3 fiscal 2025 sales and non-GAAP EPS growing 15.7% and 21.2% year over year, respectively [8][9]. - The company is facing near-term challenges, including shortened contract durations and a slowdown in transitioning to cloud-based platforms, which may decelerate top-line growth [7][8]. Company Analysis: Okta (OKTA) - OKTA has shown strong financial performance, with Q1 fiscal 2026 revenues and EPS increasing by 12% and 32.3% year over year, respectively, and a customer base of approximately 20,000 [10][11]. - The company is capitalizing on the growing demand for identity security, with a focus on securing both human and non-human identities, which is a competitive advantage [12]. - OKTA's partnership with major companies like Amazon Web Services and Microsoft is expected to drive further growth [13]. - The Zacks Consensus Estimate for OKTA's fiscal 2026 revenues and earnings indicates year-over-year growth of 9.4% and 16.7%, respectively [13]. Comparative Analysis - Year-to-date, OKTA shares have increased by 24.5%, compared to an 8.3% rise in PANW shares [16]. - PANW is trading at a forward sales multiple of 12.7X, which is higher than OKTA's 5.81X, indicating that PANW may be overvalued compared to OKTA [19]. - Given the current market conditions, OKTA is considered a more attractive investment option due to its stronger earnings growth potential and lower valuations [22][23].

Financial Highlights - CrowdStrike's Ending ARR reached $3.9 billion, a 32% year-over-year increase[86, 150] - The company's Net New ARR was $218 million, an 11% year-over-year increase[151] - Non-GAAP Subscription Gross Margin was 81%[152] - Free Cash Flow reached $272 million, a 44% year-over-year increase[152] Falcon Flex Subscription Model - Falcon Flex customers' Total Account Value exceeded $700 million in Q2 FY25, up from over $500 million in Q1 FY25 and over $185 million in 4Q24[36] - One customer case study showed a >350% ARR uplift with a total contract value of $110M+ over 5 years after adopting Falcon Flex[51] - Another customer case study showed a >200% ARR uplift with a total contract value of $20M+ over 5 years after adopting Falcon Flex[54] Market Opportunity and Growth Vectors - The company estimates the CY25 Total Addressable Market (TAM) for the AI-Native Security Platform to be $116 billion[66] and $250 billion by CY29[67] - Cloud Security ARR grew >80% year-over-year, reaching >$515 million in Q2 FY25[93, 94] - Next-Gen SIEM ARR grew >140% year-over-year, reaching >$220 million in Q2 FY25[104] - Identity Protection ARR grew >70% year-over-year, reaching >$350 million in Q2 FY25[92] Customer Adoption and Expansion - 48% of customers with $100K+ ARR have adopted 8+ modules[152] - There was a 66% year-over-year growth in deals involving 8+ modules[152]

Core Viewpoint - Dan Ives of Wedbush has raised the price target for CrowdStrike Holdings to $575, reflecting increased momentum in its cybersecurity platform approach [1][4] Group 1: Stock Performance - CrowdStrike stock has increased by 42.83% year-to-date, currently trading at $496.10 after a 0.82% rise in the latest session [1] - The new price target of $575 represents a 15.9% upside from current levels [1] Group 2: Analyst Ratings - Wall Street generally favors CrowdStrike, with 28 out of 37 analysts rating it a buy [2] - Ives' target of $575 is notably higher than the average target of $494.31 set by other analysts [2] Group 3: Earnings Outlook - The company is expected to report earnings of $0.83 per share this quarter, a decline of 20.2% year-over-year, with full-year earnings projected at $3.50 per share, down 10.9% [5] - Analysts forecast a strong turnaround, predicting earnings to increase by 34.7% to $4.72 per share in the next fiscal year [5] Group 4: Historical Performance - CrowdStrike has a solid track record, beating earnings estimates in each of the past four quarters and revenue estimates three times [6] - The last earnings report showed revenue growth of 19.8% to $1.1 billion, while earnings per share decreased to $0.73 from $0.93 a year earlier [6] Group 5: Valuation Concerns - CrowdStrike's valuation is considered premium compared to other cybersecurity companies, which may lead to stock pressure if the anticipated business momentum does not materialize [7]

Core Insights - CyberArk (CYBR) is experiencing significant growth in its machine identity business, with machine identities now outnumbering human identities by over 80 to 1, up from 45 to 1 a year ago, indicating a shift towards automated systems and AI [1][9] Group 1: Business Growth and Strategy - The company is facing challenges in scaling its pricing model as traditional per-identity pricing is not viable for millions of machine identities [2] - CyberArk is focusing on bundled platform deals, which are gaining traction, as machine identity products were included in nine of the top ten deals in the first quarter [2][9] - A policy shift to shorten certificate lifespans from 398 days to 47 days is expected to increase certificate turnover, driving demand for security management automation, which CyberArk is positioned to capitalize on [3][9] Group 2: Pricing and Market Potential - The ability to offer scalable and flexible pricing will be critical for CyberArk, with management indicating that while per-unit pricing may decrease, total deal sizes could grow two to three times larger than typical privileged access management deals [4] - The company’s future in machine identity appears strong if it can effectively scale its pricing model [4] Group 3: Competitive Landscape - Competitors like CrowdStrike and Okta are also evolving their platforms to meet enterprise security demands, with CrowdStrike enhancing its identity security platform using AI solutions [5] - Okta focuses on identity and access management, leveraging AI for real-time detection of identity attacks [6] Group 4: Financial Performance and Valuation - CyberArk shares have gained 17.6% year to date, compared to the Zacks Security industry's growth of 25.7% [7] - The company trades at a forward price-to-sales ratio of 13.4, which is below the industry average of 15.11 [11] - The Zacks Consensus Estimate for CyberArk's earnings in 2025 and 2026 implies year-over-year increases of 26.4% and 25.1%, respectively, although estimates have been revised downward recently [14]

Company Overview - Fortinet is a global leader in cybersecurity, focusing on the convergence of networking and security [3] - The company offers an extensive portfolio of over 50 enterprise-grade cybersecurity products [3] - Fortinet has a customer base of well over half a million, making its solutions among the most deployed in the industry [3] Upcoming Financial Results - Fortinet will hold a conference call to discuss its second quarter 2025 financial results on August 6, 2025, at 1:30 p.m. Pacific Time [1] - The conference call will be available in listen-only mode on the company's investor relations website [2] - Prepared remarks, supplemental slides, and a replay of the call will be accessible on the Quarterly Earnings page of Fortinet's website [2] Commitment to Cybersecurity - Fortinet is dedicated to enhancing global cyber resilience through collaboration with public and private sector organizations [3] - The Fortinet Training Institute provides extensive cybersecurity training and career opportunities [3] - FortiGuard Labs utilizes advanced machine learning and AI technologies to deliver top-rated protection and actionable threat intelligence [3]

Core Insights - Krown Technologies and Quantum eMotion are advancing the development of two quantum-secure cryptocurrency wallets: Qastle Quantum Hot Wallet and Excalibur Quantum Cold Wallet, aimed at protecting digital assets from quantum computing threats [1][8] - The partnership with Esposito Intellectual Enterprises is enhancing the commercialization and visibility of these wallets across various sectors [5][6] Product Development - Excalibur Cold Wallet is designed to be a compact, thumb-drive-sized device that offers up to 98% reduction in monetary loss risk compared to traditional cold wallets, with ongoing efforts to optimize its design for large-scale production [3][8] - Qastle Hot Wallet is being developed for online transactions, utilizing QeM's Entropy-as-a-Service and post-quantum cryptographic solutions to safeguard against quantum attacks, with recent milestones including the integration of advanced algorithms [4][8] Strategic Partnership - The collaboration between Krown Technologies and Quantum eMotion, supported by Esposito Intellectual Enterprises, is focused on driving innovation and expanding the market reach of the quantum-secure wallets [5][7] - EIE's extensive network across various industries is expected to enhance the exposure and adoption of Qastle and Excalibur wallets [6][7] Market Outlook - Krown Technologies is finalizing the design of Qastle, with prototype testing planned for Q3 2025, while Excalibur's production is set to ramp up to meet global demand, with availability anticipated in early 2026 [8] - The wallets are positioned to address increasing concerns regarding quantum vulnerabilities in cryptocurrency, as highlighted by recent research indicating that quantum computers could potentially break traditional encryption more easily than previously thought [8]