{"id":193003,"date":"2026-03-05T06:44:00","date_gmt":"2026-03-05T11:44:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/03\/05\/wells-fargo-says-these-2-beaten-down-cybersecurity-stocks-could-rebound-to-200\/"},"modified":"2026-03-05T07:35:13","modified_gmt":"2026-03-05T12:35:13","slug":"wells-fargo-says-these-2-beaten-down-cybersecurity-stocks-could-rebound-to-200","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/03\/05\/wells-fargo-says-these-2-beaten-down-cybersecurity-stocks-could-rebound-to-200\/","title":{"rendered":"Wells Fargo Says These 2 Beaten-Down Cybersecurity Stocks Could Rebound to $200"},"content":{"rendered":"

Wells Fargo Says These 2 Beaten-Down Cybersecurity Stocks Could Rebound to $200<\/a><\/p>\n

https:\/\/finance.yahoo.com\/news\/wells-fargo-says-2-beaten-114456754.html<\/a><\/p>\n

Publish Date: 2026-03-05 06:44:00<\/a><\/p>\n

Source Domain: finance.yahoo.com<\/a><\/p>\n

Author: <\/a><\/p>\n

Using an unordered list, summarize the following article with between 4 and 8 key points. Generative and agentic AI tech has proven to be a headwind for software stocks, and cybersecurity names have been affected too. That impact got more pronounced recently. The negative catalyst here was Anthropic\u2019s release of Claude Code Security, a new tool in the Claude AI model. It allows the AI to scan codebases \u2013 and also to tag vulnerabilities and inform the human users of potential patches. Cybersecurity stocks dropped sharply on the new tool\u2019s release, based on the theory of \u2018unload stocks first and sort out the disruption later.\u2019 Even though the overall cybersecurity sector took a hit, and is down generally, the stock analysts at Wells Fargo see options in this beaten-down sector as ripe for a rebound. In fact, they\u2019re predicting that two beaten-down cybersec shares will bounce back to $200 in the coming months. Using the TipRanks platform, we can see that both of these Wells Fargo picks hold Strong Buy consensus ratings from the Street\u2019s analysts. Let\u2019s give them a closer look and find out just what Wells Fargo sees in them. Zscaler (ZS) We\u2019ll start with Zscaler, a cloud-focused cybersec company that has been in operation since 2007. Zscaler\u2019s approach to cybersecurity is based on \u2018zero trust,\u2019 an approach that treats everything as a potential threat and provides secure protection for both apps and data. The company makes extensive use of AI technology and leverages that to give real-time network security and extends that protection to IoT and OT. Zscaler\u2019s Zero Trust platform is designed for enterprise use; users can set up unified security efforts without having to interlock various disparate security measures. Better for the user, Zscaler\u2019s platform is fully scalable and relevant to any private organization. The company\u2019s customers can do away with separate network firewalls, using the one Zscaler system as overall protection. The platform allows for management and supervision of secured devices, classification of new devices, control over access and use, and recognition of incoming threats. Zero Trust provides several advantages, including superior system protection, increased agility and productivity, and reduced complexity and costs. Zscaler boasts that it secures over 500 billion transactions every day and that some 40% of the Global 2000 companies use the platform. In the company\u2019s fiscal 2Q26 earnings release, Zscaler reported $815.8 million in revenue, a total that was up 26% year-over-year and was $16.8 million better than had been expected. The bottom line was $1.01 per share by non-GAAP calculations; this beat the forecast by 11 cents per share. The company realized free cash flow in the quarter of $169.1 million, up from $143.4 million year-over-year and reaching 21% of total revenue. The shares still dropped following the readout as investors were expecting more upside and have been concerned about organic growth. Add in the worries about AI\u2019s effect on the broader software segment and the shares are down by 31% year-to-date. However, Wells Fargo analyst Richard Poland covers this stock, and he sees it as a sound pick at current prices. Poland writes, \u201cWe believe ZS has an entrenched position in the large enterprise space, already having captured 45% of the F500, 40% of the G2K and 20% of enterprises >2,000 employees\u2026 Ultimately, we believe new logos can continue to contribute $300-400M per year on ~700 new logos and view saturation concerns, even on a logo basis, as overstated\u2026 ZS trades at ~6x EV\/ S & ~19x EV\/FCF on our CY26 estimates, a discount to the peer group. We see a favorable risk\/reward, as momentum is building across several growth pillars that we believe can drive upward estimate revisions in the coming years. If ZS can prove sustainable growth >20%, we expect the valuation gap to the peer group to close.\u201d Along with his Overweight (Buy) rating here, Poland sets a $200 price target that implies a one-year upside potential of 35% for the stock. (To watch Nowinski\u2019s track record, click here.) The Street\u2019s consensus on ZS is a Strong Buy, based on 34 recent reviews that break down 30 to 4 in favor of Buy over Hold. Zscaler\u2019s $154.67 trading price and $232.55 average price target indicate room for a gain of 50% in the coming 12 months. (See ZS stock forecast.) Palo Alto Networks, Inc. (PANW) The second major cybersecurity firm we\u2019re looking at here is Palo Alto Networks, the $122 billion Silicon Valley stalwart that\u2019s been on the cutting edge of online security since 2005. Palo Alto operates by subscription, offering users full lines of comprehensive firewalls capable of meeting the multitude of threats prevalent in today\u2019s cyber environment. The company is a recognized expert at securing cloud-based online workspaces, networks, and endpoint services. Palo Alto Networks knows that the advent of AI has brought a boom in cyberattacks; their number and severity have been increasing dramatically in the past few years. The company\u2019s Precision AI platform is built from the ground up to counter this trend; it is trained based on PANW\u2019s rich security dataset, a gold mine with more than 20 years\u2019 worth of online security records and data. The goal here is to build a defense that will fight AI-based cyber threats on their own terms \u2013 you need AI to fight AI. Cybersecurity, powered by artificial intelligence, counters AI-bot attacks with automated, agile defenses, creating a security environment that is at once both simpler to use and smarter in effect. This company\u2019s approach and platform have proven successful and have earned PANW a customer base that features heavy hitters. The company boasts that it serves 7 of the 10 largest US hospitals; 6 of the world\u2019s 10 largest oil and gas companies; 8 of the 10 largest US banks; and all 10 of the world\u2019s largest utility companies. That\u2019s a big boast, and it\u2019s backed up by Palo Alto\u2019s ability to protect any cloud network by meeting and defeating any cyber threat. Nevertheless, PANW shares are down by more than 15% in the year so far. Pressures include a soft earnings guide, increased competition, and, of course, the software-sector worries that the proliferation of AI tools will eat into its market share. However, Michael Turrin, covering this stock for Wells Fargo, sees plenty of reasons for optimism on PANW and says of the stock, \u201cIn an end market where consolidation had proven elusive (relative to other IT buckets), buying behaviors have shifted. We see PANW advantaged by its large enterprise customer base, distribution advantages, unmatched platform breadth & willingness to invest ahead of adoption curves (via both R&D \/ M&A). While maybe not the \u2018cleanest\u2019 story, 10%+ share in a $300Bn+ market seems like a realistic LT outcome\u2026 We believe Palo\u2019s platform and AI positioning combined with a strong financial profile (mid-teens+ growth & ~40% FCF margins) warrant a sustained premium to the comp group.\u201d These comments support the analyst\u2019s Overweight (Buy) rating, while his $200 price target points to a 28% upside on the one-year horizon. (To watch Turrin\u2019s track record, click here.) Overall, this stock has a Strong Buy consensus rating on Wall Street, based on 30 reviews that include 28 Buys and 2 Holds. The stock is priced at $156.09, and its $213.13 average price target implies that it will gain 36.5% by this time next year. (See PANW stock forecast.) Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue
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