Sell-side likes Palo Alto-Cyvera deal; FBR expects more security M&A

Though Palo Alto Networks' (PANW -4.3%) $200M acquisition of endpoint security startup Cyvera might lower its 2014 EPS by 10% and 2015 EPS by 20%, it also stands to increase the company's addressable market by a quarter to ~$20B, thinks FBN's Shelby Seyrafi.

"We view this acquisition as a logical expansion of the company’s end market that enhances its ability to provide end-to-end threat protection," says Baird's Jayson Noland. He notes Palo Alto's management plans to create an "overlay sales force" to sell endpoint security solutions.

FBR's Daniel Ives sees the deal, the latest in a string of high-profile security acquisitions (I, II), as part of a "massive consolidation in the security landscape" set for 2014. He thinks Fortinet (FTNT), Proofpoint (PFPT), and Imperva (IMPV) could be among the companies snapped up this year by larger tech firms.

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Comments (4)
  • SharkDude
    , contributor
    Comments (763) | Send Message
    Hahahaha. Of course they like it. Their job to suck up to companies and sell their stock.
    24 Mar 2014, 06:42 PM Reply Like
  • SharkDude
    , contributor
    Comments (763) | Send Message
    Sell side does not get paid to be objective.
    24 Mar 2014, 06:43 PM Reply Like
  • dtoto
    , contributor
    Comments (2) | Send Message
    FTNT gets acquired in 90 days
    25 Mar 2014, 09:34 AM Reply Like
  • ippotr
    , contributor
    Comments (62) | Send Message
    Never gonna happen. I own it
    25 Mar 2014, 06:29 PM Reply Like
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