Core Viewpoint - CrowdStrike offers a way to hedge investments in the AI sector while capitalizing on the growth of AI in cybersecurity, positioning itself as a strong investment opportunity amidst concerns of an AI bubble [1][2]. Company Overview - CrowdStrike is primarily a cybersecurity company, with its flagship product, Falcon, enhancing the effectiveness and usability of cybersecurity measures [3]. - Falcon integrates multiple cybersecurity functions, such as cloud security, data protection, and threat intelligence, into a single program, making it more cost-effective and user-friendly compared to traditional solutions [4]. Product Features - Falcon operates as a proactive defense mechanism, actively hunting for threats rather than merely serving as a passive shield [7]. - The cloud-native architecture of Falcon allows for collaborative defense across its network, improving its threat detection and response capabilities as more clients join [5]. Performance Metrics - Falcon detects breaches in an average of 4 minutes and achieves a 75% faster mean-time-to-respond (MTTR) compared to previous measures, resolving over 13 million threats annually [10]. - CrowdStrike's market cap is approximately $118 billion, with projected annual revenue nearing $3.8 billion for 2025, indicating robust growth akin to that of a start-up [11]. Financial Growth - For fiscal year 2025, CrowdStrike reported a 31% increase in revenue compared to fiscal 2024, with annual recurring revenue (ARR) growing by 23% [12]. - In Q3 2025, total revenues rose by 22% year-over-year to $1.2 billion, with ARR reaching $4.9 billion, also up 23% [12]. - Operating income increased by 32% to $265 million, with diluted earnings per share (EPS) rising by 26% and free cash flow growing by 28% to $296 million [13]. Market Potential - CrowdStrike anticipates its total addressable market (TAM) will expand from $140 billion in 2026 to $300 billion by the end of the decade, indicating significant growth potential [14]. - The company maintains a strong financial position with total debt of about $818 million against cash reserves of $4.8 billion, supporting continued growth [15]. Investment Appeal - CrowdStrike has outperformed the S&P 500 with a five-year annualized return of 18% compared to the S&P's 13%, and a 25% increase over the last 12 months against the S&P's 14% [15]. - The company presents an attractive option for investors looking to benefit from AI advancements in cybersecurity without directly investing in AI firms [16].

Flash | 01 Feb 2026 15:53:28 ET │ 11 pages kyna.wong@citi.com See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations Sangfor Technologies (300454.SZ) FY25/4Q25 NP guidance misses CITI'S TAKE Sangfor guided FY25 revenue to grow 5.5-7.2% YoY to Rmb7,930- 8,059mn (5% below CitiE/BBGe) with net profit to grow 76.8-102.7% YoY to Rmb348-399mn (34%/16% below CitiE/BBGe). Recurring net profit would grow 207.2-261.9% YoY to Rmb236-278mn. Non-recurring income and loss impa ...

Industry Overview - Cybersecurity is experiencing significant growth due to the increasing number of internet-connected devices, from computers and phones to household appliances [1] - The rise of artificial intelligence (AI) has made it easier for hackers to execute attacks, as they can now automate processes that previously required human effort [1] - Quantum computers pose a potential threat to cybersecurity, with the capability to break encryption quickly, although they are currently out of reach for most hackers [2][3] Company Profile: Palo Alto Networks - Palo Alto Networks, based in Santa Clara, California, is a leading cybersecurity company serving clients in both business and government sectors globally [3][4] - The company offers three AI-powered and cloud-enabled platforms: Strata, Prisma Cloud, and Cortex [4] Product Offerings - **Strata Cloud Manager**: This platform allows customers to manage security across their network from a single program, boasting 70,000 customers, including 94 of the Fortune 100 [4] - **Prisma Cloud**: Focused on AI applications, it detects 1.5 million new attacks daily and is integrated with over 700 partners, enhancing its market reach [5] - **Cortex**: This AI-enabled program can stop cyber threats in real-time, reducing response time by 98% and automating security responses, which decreases manual labor by 75% for cybersecurity teams [6] Performance Metrics - Palo Alto Networks' cybersecurity suite blocks 30.9 billion attacks per day and scans 480 billion security endpoints daily [6] - The company achieves a 90% reduction in clients' mean time to remediate security incidents [6]

Netskope, Inc. (NASDAQ:NTSK) is one of the 12 tech stocks with the biggest upside potential. KeyBanc analyst Eric Heath revised the firm’s price target on Netskope, Inc. (NASDAQ:NTSK) downward to $24 from $28 while reaffirming a Buy rating on January 12. The adjusted price target implies a further 62.62% upside from the current levels. In its assessment of the stock, the firm cited a combination of factors influencing the price target revision, including slightly lower valuation multiples observed among pe ...

Group 1 - CrowdStrike Holdings Inc. is recognized as one of the top stocks to consider for investment in 2026, with a Neutral rating and a price target of $485 set by Macquarie [1] - The company is well-positioned in the cybersecurity sector, particularly in endpoint platform protection, and is experiencing growth from its expansion into cloud security and identity protection, which now constitutes over 30% of its annual recurring revenue [2] - Macquarie anticipates that CrowdStrike will unlock long-term opportunities in securing AI models and applications, supported by AI detection and response tools from recent acquisitions [3] Group 2 - CrowdStrike is expanding its Global Data Sovereignty initiative by establishing new in-country cloud deployments in the Middle East, providing local data residency options for organizations in Saudi Arabia, India, and the UAE [4] - The company specializes in cloud-native protection for endpoints, cloud workloads, identity, and data through its AI-powered Falcon platform, focusing on real-time security telemetry analysis to prevent breaches [5]

Group 1 - Palo Alto Networks Inc. has completed its acquisition of Chronosphere, enhancing its AI-driven cybersecurity platform [1][2] - The acquisition aims to automate the detection and resolution of IT and security issues by integrating Chronosphere's observability platform with Palo Alto's Cortex AgentiX [2] - Chronosphere's telemetry pipeline is designed to reduce data volumes by 30% or more, supporting enterprises' shift towards autonomous operations [2] Group 2 - Research firm Citizens has reiterated a Market Perform rating on Palo Alto Networks with a price target of $250, reflecting confidence in the company's platformization potential [3][4] - Piper Sandler has identified Palo Alto Networks as a top cybersecurity stock for growth through 2026, maintaining an Overweight rating due to stable software demand [5] - The company is benefiting from industry consolidation, leading customers to prefer platform solutions from single vendors [4] Group 3 - Palo Alto Networks is recognized as a global leader in cybersecurity, specializing in AI-powered platforms for network, cloud, and security operations [6] - The company focuses on next-generation firewalls, Prisma cloud security, and Cortex AI-driven threat detection to protect data, users, and applications across various industries [6]

Core Insights - Leidos is acquiring ENTRUST Solutions Group for $2.4 billion in an all-cash deal to enhance its energy business, which is described as a "hidden gem" with double-digit growth and margins [2][5][9] - The acquisition aligns with Leidos' "North Star 2030" strategy, focusing on growth in power and energy infrastructure engineering services [3][4] - The deal is expected to close in Q2 2026 and will be accretive to adjusted EPS in 2027, with significant synergies anticipated [4][11][12] Company Overview - Leidos is a technology and engineering company providing services to government and commercial customers, with a focus on national security, defense, and civil government markets [17] - The company has a strong emphasis on systems integration, engineering, cybersecurity, and data analytics [17] Acquisition Details - The acquisition will add approximately 3,100 employees to Leidos and position it as a top-4 U.S. power and transmission & distribution engineering provider [5][8] - ENTRUST is expected to contribute about $650 million in annual revenue, implying a purchase multiple of approximately 16x next-12-month EBITDA [4][9][10] - Leidos plans to finance the acquisition through a combination of bonds, cash, and commercial paper, with a committed bridge facility in place [4][12] Strategic Fit - The acquisition is seen as creating an "integrated platform" for engineering and program management across various energy sectors, enhancing cross-selling opportunities [6][8] - Leidos aims to leverage ENTRUST's capabilities to increase its exposure to electric power generation and gas markets [6][14] Market Context - The deal is positioned within broader trends in energy infrastructure investment, including rising electricity demand and a focus on grid reliability and security [14] - Leidos expects to enhance its cybersecurity capabilities in the utility market as part of the expanded platform [14] Cultural and Operational Considerations - Due diligence indicated a strong cultural fit between Leidos and ENTRUST, with similar organizational structures and compensation levels [7] - The integration will be managed by the same leadership team that successfully completed a prior acquisition, focusing on technology application rather than workforce reduction [16]

Core Insights - Insider buying activity has been observed in Salesforce and SentinelOne, indicating potential confidence from executives in these companies as they head into the new year [1][3]. Salesforce - Salesforce Director David Blair Kirk purchased over 1,900 shares for more than $500,000 in mid-December, while activist firm ValueAct acquired an additional $25 million worth of Salesforce stock [2]. - The stock is currently trading at a forward price-to-sales (P/S) ratio of 4.7 times and a forward price-to-earnings (P/E) ratio of approximately 17.5 times based on 2026 analyst estimates, making it appear attractively priced [4]. - Salesforce has positioned itself as a leader in AI by acquiring Informatica and launching Data 360, which could drive significant growth as the company pivots towards becoming an AI agent company [6]. SentinelOne - Director Mark Peek bought nearly $600,000 worth of shares in mid-December, reflecting confidence in the company's future [3]. - SentinelOne has reported a revenue growth of 23% last quarter, yet it trades at a forward P/S ratio below 4.5 times 2026 analyst estimates, indicating it is undervalued compared to larger competitors [7]. - The company is expected to benefit from its partnership with Lenovo and its Singularity Data Lake product, which offers secure data queries at a lower cost and faster speed than competitors like Splunk [9].

Core Viewpoint - OneSpan Inc. is expanding its mobile security capabilities through the acquisition of Build38, aiming to enhance its App Shielding offerings and provide stronger protection against mobile application attacks [2][3][4]. Group 1: Acquisition Details - OneSpan signed a definitive agreement to acquire Build38, a company specializing in next-generation mobile application protection [2]. - The acquisition is expected to close by March 2026, pending regulatory approvals and customary closing conditions [6]. Group 2: Security Enhancements - The integration of Build38's SDK-based security tools will enhance OneSpan's mobile security portfolio, providing deeper in-app protection against attacks targeting applications and devices [3][4]. - The acquisition will improve visibility into mobile app activities, addressing a common need among security teams [3]. Group 3: Market Position and Compliance - Build38 is recognized as a Sample Vendor in the Gartner Hype Cycle for Application Security, 2025, and is a leading provider in Europe for securing mobile identities [5]. - The combined expertise of OneSpan and Build38 aims to elevate standards in mobile identity protection, particularly in regulated industries [5]. Group 4: Financial Information - OneSpan offers a quarterly dividend of $0.12 per share, resulting in a dividend yield of 4.12% as of January 29 [6].

Group 1 - Rapid7 Inc. is considered one of the best small-cap tech stocks to invest in currently, with recent price target adjustments from analysts [1] - Mizuho analyst Gregg Moskowitz reduced the price target for Rapid7 from $20 to $16 while maintaining a Neutral rating, citing valuation compression as a primary driver [1][2] - Truist also lowered its price target for Rapid7 from $18 to $14 with a Hold rating, anticipating strong Q4 results but conservative guidance for 2026 [3] Group 2 - The firm noted solid public cloud performance and strong AI adoption, but expressed concerns over moderate budget activity and the impact of AI-related disruption on software company multiples [2] - Despite steady demand from IT budget holders, software equities, including Rapid7, face significant headwinds [3] - Rapid7 provides cybersecurity software and services under various brand names, including Rapid7, Nexpose, and Metasploit [4]