Investment Upgrade and Downgrade by KeyBanc
Investing.com — KeyBanc Capital Markets upgraded Okta Inc (NASDAQ:OKTA) and Fortinet Inc (NASDAQ:FTNT) to "overweight" due to improving demand in the cybersecurity sector for 2025. Conversely, it downgraded C3.ai Inc (NYSE:AI) to "underweight."
Expectations for IT Budgets in 2025
The brokerage anticipates stronger IT budgets in the coming year, with identity management and firewall solutions emerging as top security priorities.
Prospective Growth for Okta and Fortinet
- Okta is well-positioned due to its leadership in identity solutions.
- Fortinet is expected to grow thanks to an industry refresh and its competitive advantage in secure access service edge.
KeyBanc set a price target of $115 for both Okta and Fortinet, highlighting their attractive valuation and potential for estimate revisions and multiple expansions. Analysts mentioned that Fortinet's opportunity from end-of-service refresh isn’t fully reflected in current consensus estimates.
Downgrade for C3.ai
C3.ai was downgraded due to concerns over slowing subscription revenue growth and its dependency on key partnerships. KeyBanc set a target price of $29, indicating a 28% downside potential for the stock.
Snowflake’s Potential
The brokerage noted that Snowflake (NYSE:SNOW) is in the early stages of benefiting from an increased focus on OLAP, along with an expanded product portfolio that includes AI solutions. KeyBanc believes there is an opportunity for improved investor sentiment moving forward.
Comments (0)