Citi lifts cybersecurity targets amid AI spending trends
Citi has raised price targets for several cybersecurity firms, citing improving enterprise spending momentum tied to AI deployments.
The move follows a retreat in cybersecurity stocks earlier this month, which StartupReader covered on 28 September as valuations appeared elevated despite strong demand. Citi’s note suggests that AI-related security investments may be contributing to spending trends, though it remains unclear whether this will fully address earlier concerns.
Okta also received a target increase, though Citi kept its "Neutral" rating.
Wells Fargo, meanwhile, raised its target for another cybersecurity firm but retained an "Underweight" stance, reflecting ongoing skepticism among some analysts about the sector’s near-term outlook. The differing views highlight uncertainty about how valuations align with execution.
Recent funding rounds—including Armadin’s $250 million raise and Island’s $6.4 billion valuation—indicate private markets remain optimistic about AI-driven security tools. Whether public markets will follow remains to be seen.
Sources: msn.com
“The adjustments suggest some analysts see AI-related security investments as a potential driver for spending, though questions remain about broader market sentiment.”
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