CrowdStrike and Palo Alto Networks shares jumped more than 5% to record highs on Monday after the Black Hat cybersecurity conference underscored renewed demand for AI security tools. Analysts at BTIG raised price targets on both stocks and several peers, citing AI-driven demand for their security products.
CrowdStrike and Palo Alto Networks shares jumped more than 5% to new highs on Monday on renewed demand for artificial intelligence security tools, following the industry's annual Black Hat conference in Las Vegas.
AI agents reshape the threat landscape
The single most consistent theme across conversations with partners, vendors and customers alike was that "AI agents have fundamentally changed the threat landscape," analysts at BTIG wrote in a note to clients. The analysts said AI agents have become the predominant attack threat and that the security environment has meaningfully worsened, though they added that deployment of AI security tools is still in its early innings.
Businesses are turning to cybersecurity vendors for new agentic tools to counter adversaries in what BTIG described as a hyper-accelerated threat landscape fueled by new cyber models. Executives and potential customers gathered in Las Vegas last week in search of answers and ways to secure systems from rogue AI agents.
Price targets climb across the sector
BTIG lifted its price target on Palo Alto Networks to $380 a share, reflecting about 4% upside from Friday's close. The firm pointed to Palo Alto's identity platform as a beneficiary of the spread of AI agents, while products including XSIAM and Chronosphere give the company an edge in other security verticals.
The firm also raised its CrowdStrike target to $237 per share, implying 11% upside from Friday's close, and increased Rubrik's target to $109 per share. BTIG said AI is driving a new modernization cycle in the endpoint security space that directly benefits CrowdStrike's core business.
Other cybersecurity stocks rallied alongside the two market leaders. Tenable and Rubrik shares rose more than 7%, while Netskope and Zscaler each climbed about 5%. Analysts at Cantor said AI has shifted from a cybersecurity feature to a core part of both the attack surface and the infrastructure used by attackers and defenders alike.
By early afternoon, Palo Alto Networks shares traded at $381.05, up $17.19, or 4.72%.
Source: US Top News and Analysis
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