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Bernstein downgrades three cybersecurity stocks, despite higher targets
Analysts at Sanford Bernstein downgraded Palo Alto Networks, Okta, and SentinelOne to Market Perform, while raising price targets on all three, with SentinelOne the only one above the consensus.
Sanford Bernstein analyst Peter Weed downgraded three cybersecurity stocks, shifting Palo Alto Networks to Market Perform from Outperform, and applying the same downgrade to Okta and SentinelOne, according to MarketBeat Ratings.
Weed raised price targets on all three companies even as he cut the ratings, with SentinelOne the only one whose new target exceeded the consensus level.
The article attributes the ratings shift to ongoing debate around AI-driven demand versus slower margin growth, and it notes that investors have been focusing on risks from AI agents that could require more aggressive cybersecurity measures.
It also points to recent earnings reports as helping ease broader concerns about the sector, while saying investors are now watching the potential impact of AI agents on cybersecurity spending, and it includes a cited 12-month forecast for Palo Alto Networks.