Evercore survey signals stronger cybersecurity budgets, lifting sector stocks

Evercore ISI's quarterly survey of channel partners found a strengthening budget outlook across cybersecurity. Channel partners help vendors sell or deliver products, giving them a view of customers' purchasing plans.^[1]

Cybersecurity stocks outperformed the rest of large-cap technology, with Okta, CrowdStrike and Palo Alto Networks rising about 4%, according to the report.^[1]

If customers put larger budgets into purchases, security software vendors could win more new orders or sell more products to existing customers, increasing revenue. The survey's improving budget outlook supports that sales opportunity.^[1]

The supplied report gives no budget-growth estimate or confirmed increase in orders. Turning the opportunity into revenue still depends on customers approving and carrying out purchases.^[1]

Impact

• Cybersecurity softwareOpportunity

  A stronger customer-budget outlook gives Okta, CrowdStrike, Palo Alto Networks and their rivals more opportunity to compete for additional purchases. The sector-wide survey supports the industry's demand outlook, but does not establish which vendors will win more orders.^[1]