Heartbleed Bug Won't Impact Revenue at Security Companies, Says Analyst (PANW) (FEYE) (FTNT) (CHKP)

The Heartbleed bug, a new security bug that was discovered this week, will not impact revenue at security companies, said analyst Gray Powell of Wells Fargo. The virus exploits a flaw in OpenSSL encryption software. .

"The bug can scrape a server's memory, where sensitive user data is stored, including private data such as usernames, passwords, and credit card numbers," said Powell. "The bug apparently went undetected for two years and can be exploited without leaving a trace. Last night, we saw more articles on the bug noting that in addition to websites, it also affects appliances like firewalls. However, Facebook (NASDAQ: FB), Twitter (NASDAQ: TWTR) and Google (NASDAQ: GOOG) appear to be safe."

For security stocks Palo Alto Networks (NYSE: PANW), FireEye, Inc. (NASDAQ: FEYE), FORTINET (NASDAQ: FTNT), and Check Point Software Technolog (NASDAQ: CHKP), Powell views headlines as noise.

"We think the event represents more headline noise for the security space than a real fundamental event that changes enterprise purchase decisions. We note that many vendors have already issued patches including PANW and FTNT. That said, it does show how security issues continually evolve and emphasizes the need for basic security hygiene in addition to next generation products that prevent sensitive data extraction. We continue to rate PANW, CHKP, FEYE, and FTNT Outperform," added the analyst.

For an analyst ratings summary and ratings history on Checkpoint Software click here. For more ratings news on Checkpoint Software click here.

Shares of Checkpoint Software closed at $66.14 yesterday.

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