A brisk couple of days of analyst chatter on cyber security stocks is slightly taking its toll on the high-flying PureFunds ISE Cyber Security ETF (NYSEArca: HACK).
HACK is lower by 1.8% today after Barclays lowered its rating on FireEye (NasdaqGS: FEYE) to equal weight. Shares of FireEye are off nearly 5%, but the stock is still up 9.1% over the past month. The Californina-based cyber security firm is HACK’s 14th-largest holding at a weight of almost 4%.
The Barclays downgrade of FireEye comes a day after Citigroup and Robert W. Baird downgraded Fortinet (NasdaqGS: FTNT), though Citi did boost its price target on that stock to $44 from $41, according to Barron’s. Fortinet is HACK’s tenth-largest holding at a weight of just over 4%.
It is not all glum news in terms of analyst action on HACK holdings. Barron’s also reported Friday that Barclays initiated coverage of Fortinet with an overweight rating and Check Point (NasdaqGS: CHKP) with an equal weight rating. Barclays has a $50 price target on Fortinet, implying significant upside from the $41.30 area at which the stock currently resides.
Barclays has a $90 price target on Check Point, which is also well above where the stock currently trades. The network security provider, which commands a weight of 3.7% in HACK, trades at $80 as of this writing. [Headlines Help HACK]
Barclays is also enthusiastic on Palo Alto Networks (NasdaqGS: PANW), maintaining an overweight rating on the stock while boosting its price target to $210, implying upside of more than 19% from current levels. HACK also devotes about 4% of its weight to Palo Alto.