Investment bank Jefferies is predicting a significant rebound in the share price of Darktrace, a British cybersecurity company, after two years of poor returns. With shares already up 75% over the past year and more than doubling since hitting an all-time low in early 2023, Jefferies analysts are optimistic about the company’s future performance. The latest third-quarter results exceeded expectations, with key metrics like net annualized recurring revenue showing strong growth and revenue increasing by 26% for the quarter.
Jefferies has raised its price target for Darktrace to 890 pence from 550 pence, citing the company’s accelerating business and narrowing valuation gap with its peers in the cybersecurity sector. Darktrace, with its technology and growth model, is poised to gain market share and deliver superior growth in the medium term, according to the investment bank. Despite being the target of a short-seller report last year, Darktrace has taken steps to address investor concerns by appointing auditing firm EY to review its financial processes and controls. Overall, analysts are optimistic about Darktrace’s future potential, with a consensus price target pointing to a 24.4% upside for the stock.