Goldman Sachs predicts stable cybersecurity sector growth in 2025, with potential upsides and downsides

From Investing.com: 2025-01-12 05:00:00

Goldman Sachs predicts stable to improving fundamentals for the cybersecurity sector in 2025, driven by demand for platform-based solutions. Companies like Fortinet, CrowdStrike, and Cloudflare saw stock gains in 2024, while Okta and Zscaler lagged. Cloudflare was upgraded to a “buy” with a $140 price target, while Check Point was downgraded to “neutral”.

Fortinet maintains a “buy” rating with a 20% upside potential, positioning well for the firewall refresh cycle. The cybersecurity sector ended 2024 trading at a 25% premium to the broader software industry, reflecting long-term growth drivers. Despite a slight growth deceleration in 2025, positive revenue inflections are expected.

Goldman Sachs warns of competitive pressures from hyperscalers like Microsoft and Google, as well as geopolitical and macroeconomic uncertainties. However, the industry outlook remains optimistic. Companies with strong platform strategies and diversified offerings are best positioned to outperform in 2025 and beyond amidst the volatile macro environment.



Read more at Investing.com: Goldman Sachs’ 2025 outlook on cybersecurity stocks By Investing.com