Latest news with #RedCanary
Yahoo
15 hours ago
- Business
- Yahoo
Wells Fargo Upgrades Zscaler (ZS) Stock, Lifts PT
Zscaler, Inc. (NASDAQ:ZS) is one of the 10 software stocks analysts are upgrading. On June 13, Wells Fargo upgraded the company's stock to 'Overweight' from 'Equal Weight,' lifting the price objective to $385 from the previous target of $260. As per the firm, software infrastructure spending in H2 2025 is expected to be driven by the adoption of agentic AI, which tends to benefit several software companies, including Zscaler, Inc. (NASDAQ:ZS). An employee standing in front of a large data center, looking toward the future of cloud security. The research firm cited Zscaler, Inc. (NASDAQ:ZS)'s potential to reach $5 billion in annual recurring revenue by fiscal 2027 as one of the measures of the upgrade. Despite the increase in the stock price YTD, the firm believes it still possesses significant room for multiple expansion. Well Fargo expects more than 20% billings growth in FY 2026 and continues to see margin expansion continuing, together with revenue growth. Notably, the company's stock has increased by ~66% on a YTD basis. In May 2025, Zscaler, Inc. (NASDAQ:ZS) signed a definitive agreement to acquire Red Canary, which is a leading managed detection and response (MDR) vendor. Through the combination of Zscaler, Inc. (NASDAQ:ZS)'s high-volume and high-quality data with Red Canary's domain expertise in MDR, Zscaler, Inc. (NASDAQ:ZS) plans to ramp up its vision to deliver AI-powered security operations. While we acknowledge the potential of ZS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Sign in to access your portfolio
Techday NZ
12-06-2025
- Business
- Techday NZ
Red Canary deploys AI agents to slash security investigation times
Red Canary has announced the introduction of a suite of AI agents designed to perform tier 2 security investigations at the pace and calibre of experienced analysts. These AI agents have already conducted over 2.5 million investigations, reportedly reducing the average investigation time by 90%. The agents are trained on a decade's worth of operational data and provide contextual gathering, alert enrichment, and recommended actions for identified threats, with a stated aim to lessen alert noise and assist security teams in managing evolving threats without increased complexity or risk. Reducing manual security tasks The AI agents are described as specialists across every phase of detection, investigation, and response. They cover roles including security operations centre (SOC) analyst, detection engineering, threat intelligence, and user analysis, automating many procedures traditionally undertaken by security experts. For organisations, this means the agents automate both Tier 1 and Tier 2 analyst tasks in various environments such as cloud, identity, Security Information and Event Management (SIEM), and endpoint systems. According to Red Canary, this leads to faster root cause analysis and remediation of security incidents. In addition, a threat intelligence agent compares threats against known profiles, identifying new trends and aiding intelligence operations. Impact and efficiency Red Canary states that, by automating analyst-level workflows, customers have reduced investigation times from over 20 minutes to under three minutes on average, with the company citing a 99.6% customer-validated true positive rate. The system is built to be enterprise-grade, with training on 10 years of real-world data and with continuous oversight by security operators to ensure consistency and reliability. "Several years ago, we introduced automation to replace repetitive Tier 1 work," said Brian Beyer, CEO and Co-founder of Red Canary. "Now, by combining the best of agentic AI with AI agents that are equipped with years of frontline experience, we're taking the next leap—accelerating Tier 2 investigations with the speed of automation and the judgment of experienced security analysts. This shift allows every Red Canary detection engineer to focus on Tier 3-level analysis, delivering deeper insights and stronger outcomes for our customers." Practical use cases Red Canary offered specific examples to illustrate the value of the AI agents. In one scenario, a user behaviour analysis agent flagged an anomalous Salesforce login, missed by other tools. A reputation analysis agent added context by identifying the login as originating from a high-risk IP address. Red Canary's team validated the threat and quickly alerted the customer, allowing for immediate password reset and containment within minutes. Another example involved a compromised account detected through alert enrichment and user behaviour analysis. These agents identified a suspicious application and proxy activity from an unfamiliar ISP and geography. A Red Canary detection engineer confirmed that a user's access token had been compromised and notified the customer's security operations team for swift response. Scope of agent capabilities The suite currently includes agents specialised for specific systems, including Microsoft Defender for Endpoint, Crowdstrike Falcon Identity Protection, AWS Guardduty, and Microsoft Sentinel. These agents are designed to deliver consistent procedures for their respective environments. The response and remediation agent offers concrete steps for both addressing current incidents and hardening systems to reduce future risk, while the user baselining and analysis agent highlights deviations in user activity by comparing real-time behaviour to historical patterns. Red Canary underscores that its agents are not fully autonomous decision-makers; instead, their outputs are subject to the oversight of experienced detection engineers, aiming to balance automation, reliability, and human judgement. This development represents an ongoing trend in the security sector towards applying artificial intelligence to reduce manual workloads, lower incident response times, and support strained security teams. According to Red Canary, its focus remains on reducing noise, accelerating triage, and providing expert analysis for each threat faced by its clients.
Forbes
05-06-2025
- Business
- Forbes
Zscaler Buying Red Canary: A Canary In The Cybersecurity Coalmine?
Zscaler Acquires Red Canary in $675 Million Deal, Signaling a New Chapter in Cybersecurity Services ... More Integration. Hot on the heels of Google's eye-popping acquisition of Wiz for a rumored $23 billion valuation, the cybersecurity market is once again making headlines, this time with Zscaler's announcement that it will acquire Red Canary, a leading Managed Detection and Response firm. While the numbers may be smaller, the strategic implications may prove just as significant. This is not just another consolidation play in the crowded MSSP and MSP space. It's something different. For the first time at this scale, a cloud-native firewall vendor is acquiring a services-first cybersecurity company. It reflects a broader shift in a turbulent market, where traditional boundaries between software, platforms and services are collapsing in favor of integrated, outcome-driven solutions. Zscaler, a cloud-native security leader processing over 500 billion transactions daily, serves ... More nearly half of the Fortune 500 through its Zero Trust Exchange platform. Zscaler, founded in 2007, built its reputation as a pioneer in secure cloud connectivity. It operates a global security cloud with more than 150 data centers and processes over 500 billion transactions per day. Nearly half of the Fortune 500 relies on Zscaler's Zero Trust Exchange platform to securely connect users, devices and applications. Its focus has long been on scalable, identity-based access controls and policy enforcement — not services. Until now. Red Canary, founded in 2013 and based in Denver, has become one of the most respected names in MDR. Its platform offers around-the-clock detection, investigation and response for enterprise customers, helping fill the growing gap in skilled security operations talent. With an estimated $140 million in annual recurring revenue and a reputation for precision threat analytics, Red Canary is a natural bolt-on for a company looking to deliver turnkey threat protection. Zscaler is acquiring Red Canary to accelerate its roadmap for an AI-powered, full-stack Security Operations Center. This includes not just technology, but skilled services, an area where most firewall vendors have historically stayed out. By combining Red Canary's MDR capabilities with Zscaler's deep cloud visibility, the deal promises: It's not just an expansion. It's a signal that the lines between infrastructure vendors and cybersecurity service providers are vanishing. The reported deal size is approximately $675 million, split between cash and equity. That places the transaction at roughly 5.7x Red Canary's $140 million ARR, in line with market expectations for high-growth cybersecurity firms. The deal is expected to close in August 2025, pending regulatory approval. By comparison, recent MDR acquisitions have either been quiet roll-ups or smaller tuck-ins. This one is different. Zscaler is a publicly traded, platform-first company paying a premium to bring a services company in-house. It sets a precedent. We have already seen early signs of this convergence. SonicWall acquired MDR firm Solutions Granted in late 2023. Fortinet has made moves toward managed SASE offerings. Cisco, Palo Alto Networks, Check Point and others are undoubtedly watching closely. But Zscaler's Red Canary deal may be the moment this trend breaks into the mainstream. It challenges the old notion that firewall and network security companies should stay product-focused and leave services to the MSSPs. That barrier is officially gone. This is a compelling moment in the evolution of cybersecurity. With AI, cloud and geopolitical risk accelerating enterprise security needs, customers are demanding outcomes not just tools. That means companies like Zscaler will increasingly have to deliver both software and services, seamlessly integrated. The Zscaler–Red Canary acquisition may be remembered not just for its price tag, but for what it represents: the beginning of a new era where cloud security platforms and service providers are no longer distinct categories. And this may just be the beginning.
Yahoo
04-06-2025
- Business
- Yahoo
Red Canary Acquisition, AI Innovations Propel Zscaler's Growth Story: Analyst
Needham analyst Mike Cikos maintained a Buy rating on Zscaler (NASDAQ:ZS) and raised the price forecast from $310 to $350. On June 3, Cikos attended Zscaler's annual Zenith event, the company's flagship gathering for customers and partners. In an analyst note, he said that the company unveiled several new capabilities, primarily focused on AI and the expansion of its Zero Trust Everywhere initiative. These enhancements aim to bolster data security and thwart cyberattacks, directly addressing critical challenges businesses face when adopting AI, such as protecting proprietary information and ensuring regulatory stated that he sees Zenith as Zscaler's initial presentation of management's expansive vision for a reimagined Agentic SOC (Security Operations Center) powered by AI innovations supporting their Data Fabric for Security. Concurrently, the acquisition of Red Canary is expected to accelerate this vision by adding domain experts capable of engaging with customer SOC teams, a slightly different client persona, the analyst noted. Additionally, the analyst pointed out that Red Canary is anticipated to empower Zscaler's partners to serve clients better while advancing the Threat Management vision by more effectively utilizing security signals for investigations. The analyst believes that Zscaler is capable of maintaining its high level of execution as new sales hires increase their productivity and attrition rates decline. Cikos mentioned that in the third quarter of FY25, Zero Trust Everywhere customers grew over 60% sequentially to more than 210, targeting over 390 by the end of FY26. The company sees a 6x up/cross-sell opportunity in existing customers, and Cikos views newer products like Branch and AI Analytics as underappreciated. Cikos foresees sustained ~20% growth, with operating margins eventually surpassing 30% in the long term. Price Action: ZS shares are trading higher by 1.05% to $298.19 at last check Wednesday. Read Next:Photo by Sundry Photography via Shutterstock Date Firm Action From To Mar 2022 Daiwa Capital Upgrades Underperform Buy Feb 2022 BMO Capital Maintains Outperform Feb 2022 Deutsche Bank Maintains Buy View More Analyst Ratings for ZS View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Red Canary Acquisition, AI Innovations Propel Zscaler's Growth Story: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
02-06-2025
- Business
- Yahoo
Why Are Zscaler (ZS) Shares Soaring Today
Shares of cloud security platform Zscaler (NASDAQ:ZS) jumped 5.1% in the afternoon session after the stock's momentum strengthened following the strong first quarter 2025 results reported the previous week, which exceeded Wall Street's sales, operating profits, and earnings (EPS) estimates. In response, Wall Street analysts maintained bullish ratings, with several raising their price targets, reflecting increased confidence in the company's growth potential. UBS raised its price target from $260 to $315 while reiterating a Buy rating, suggesting the firm saw significant upside potential. Canaccord Genuity analyst Kingsley Crane also raised the stock's price target from $230 to $305 and maintained a Buy rating. He noted that Zscaler outperformed consensus expectations across all key metrics in the quarter. In addition, the company's acquisition of Red Canary was highlighted as an important move into the managed detection and response (MDR) market, a rapidly growing segment. The analyst emphasized that the deal could improve Zscaler's security operations center (SOC) capabilities. Is now the time to buy Zscaler? Access our full analysis report here, it's free. Zscaler's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 3 days ago when the stock gained 8.4% on the news that the company reported impressive first-quarter 2025 results, with billings, revenue, EPS, and adjusted operating income outperforming Wall Street's estimates. Management clarified there were no changes in the macro environment, which tempered growing concerns cited by peers that reported earlier. Notably, broader market trends around AI and cybersecurity, highlighted by a reported 3,000% increase in enterprise AI usage, suggested an expansion in the addressable market. This is expected to be augmented by recent acquisitions, including Red Canary and Avalor, for data security management. Red Canary reported $140M ARR earlier in the year, suggesting it will be a significant contributor to growth. Looking ahead, Zscaler reported optimistic full-year EPS guidance, which exceeded analysts' expectations. Overall, we think this was still a solid quarter with some key areas of upside. Zscaler is up 59.4% since the beginning of the year, and at $289.50 per share, has set a new 52-week high. Investors who bought $1,000 worth of Zscaler's shares 5 years ago would now be looking at an investment worth $2,727. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
