Cybersecurity Has 'Robust' Deal Flow Into 2016 - FBR Capital (PANW)

FBR Capital analyst Dan Ives said cybersecurity deal flow remains "robust" heading into 2016.

Ives commented: "On the heels of another strong year for cybersecurity players, our recent field checks heading into 2016 suggest “robust” deal momentum as enterprises and governments across the board upgrade to next-generation security platforms/software. Based on our conversations with channel partners/customers over the last few weeks, closure rates look to be trending higher year over year, with sevenfigure deals markedly up in the pipeline. This speaks to the massive firewall refresh that is underway, with hot areas of security (next-generation firewall, e-mail security, mobile/cloud) as the main beneficiaries"

The firm sees Palo Alto Networks (NYSE: PANW) as the clear winner in the space heading into the new year. Ives also said Check Point (NASDAQ: CHKP), Proofpoint (NASDAQ: PFPT), Imperva (NYSE: IMPV), CyberArk (NASDAQ: CYBR), and Fortinet (NASDAQ: FTNT), among others, could benefit from what we believe will be a 30%-plus growth market for next-generation cybersecurity solutions in 2016. However, they do not expect a rising tide to lift all boats and highlight FireEye's (NASDAQ: FEYE) company-specific execution issues and product headwinds.

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