Even before the age of AI and the coming age of quantum computing, data security and cybersecurity have been paramount to all IT systems running smoothly for the better part of thirty years. The problem is that data breaches and software glitches have resulted in too many instances to easily count where major losses for enterprises and customers alike have been seen. It’s countless billions in losses, and those are just the losses that have been reported.
This world of cybersecurity is only going to become even more important when IT systems may face countless thousands of security threats every second of every day. One independent estimate from Cybertrustlog even projected that $333,000 was lost every minute to cyber attacks during 2025 alone.
BofA Securities has raised its expectations for four top stocks in its cybersecurity coverage universe with significantly higher price objectives. The firm sees a valuation framework being reset higher across its coverage to reflect sustained AI driven “multiple expansion” and also due to improving sentiment. Here is what it sees driving share prices higher as 2027 comes into focus.
The firm sees AI adoption strengthening cyber’s long term growth durability, platform relevance, and strategic importance across security. Analyst Tal Liani also sees a durable 20%+ growth outlook supporting premium multiples. Liani’s report says:
As AI increases data volumes, expands attack surfaces, and raises security complexity, cybersecurity is becoming an increasingly critical spend category, supporting higher growth durability and strategic relevance across the group. We believe leading platforms are positioned to be net beneficiaries of AI, both through rising demand for security solutions and through the increasing value of their data, automation, and AI-driven capabilities.
Please read the disclaimer about analyst research reports below.
BofA’s TOP 4 CYBER STOCKS
Cloudflare (NET) was reiterated as Buy and its price objective was raised to $330 from $255 (versus $262.15 prior close). Liani showed Cloudflare emerging as one of the clearest AI beneficiaries across the
software landscape, with the strategic value of its global network deserving a premium.
Palo Alto Networks (PANW) was reiterated as Buy and the price objective was raised to $420 from $330 (versus $323.79 prior close). The report cited that Palo Alto remains one of the best positioned beneficiaries of both security platform consolidation and the accelerating adoption of AI across enterprise environments. BofA further noted that it was raising the 2027 EV/Sales multiple to 19 from 15 to derive its higher price objective in part on Palo Alto’s leadership across network security, cloud security, and security operations allowing it to capture a growing share of security budgets.
SentinelOne (S) was reiterated as Buy and its price objective was raised to $22 from $20 (versus $18.14 prior close). The report noted:
As enterprises look to consolidate security tools and leverage AI to address growing threat volumes, we believe SentinelOne’s technology leadership and improving execution support a more sustainable growth outlook than currently reflected in its valuation.
CrowdStrike (CRWD) was maintained as Neutral but BofA’s price objective was raised to $230 from $187.50 (versus $183.28 prior close). While BofA sees this stock valuations as already reflecting its strengths, the report said:
CrowdStrike remains one of the best positioned vendors in security, with leadership across endpoint, cloud, identity, and security operations, with ongoing adoption of AI-powered capabilities and platform consolidation supporting a durable growth outlook.
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DISCLAIMER
Be advised that all price targets, ratings and notes for each company have come from BofA Securities. Oggonomics does not publish any formal ratings and price targets of its own.
While no single analyst report should ever be the sole basis to buy or sell a stock, there are some key sector views that sometimes merit deeper reviews with impressive upside to analyst price targets. Just don’t forget that analysts can also get their thesis wrong. Company and sector fundamentals may change in an instant. Investors should also always keep in mind that no research report ever comes with money-back guarantees in the event of losses, and there are never any assurances that analyst price targets will ever be achieved.
