Cybersecurity firm Darktrace broke Monday after Peel Hunt started reporting the stock on « sell » because it took « a more informed approach » to valuation.
Peel Hunt noted that Company posted an average annual ROI of 49% per year in FY18-21.
« Growth was driven by its powerful go-to-market strategy that aims to empower companies to strengthen their cybersecurity defenses, » said the broker.
« Although we assume that the strong growth rates will continue, we also see a discrepancy between the valuation and the ultimate revenue opportunity.
» Taking into account the potential market size, intensifying competition and the With Darktrace’s limited R&D spending, we are taking a more informed approach to our valuation with a target price of 473 pence. «
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