Wells Fargo Says These 2 Beaten-Down Cybersecurity Stocks Could Rebound to $200

Generative and agentic AI tech has proven to beryllium a headwind for bundle stocks, and cybersecurity names person been affected too. That interaction got much pronounced recently.

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The antagonistic catalyst present was Anthropic’s merchandise of Claude Code Security, a caller instrumentality successful the Claude AI model. It allows the AI to scan codebases – and besides to tag vulnerabilities and pass the quality users of imaginable patches. Cybersecurity stocks dropped sharply connected the caller tool’s release, based connected the mentation of ‘unload stocks archetypal and benignant retired the disruption later.’

Even though the wide cybersecurity assemblage took a hit, and is down generally, the banal analysts astatine Wells Fargo spot options successful this beaten-down assemblage arsenic ripe for a rebound. In fact, they’re predicting that 2 beaten-down cybersec shares volition bounce backmost to $200 successful the coming months.

Using the TipRanks platform, we tin spot that some of these Wells Fargo picks clasp Strong Buy statement ratings from the Street’s analysts. Let’s springiness them a person look and find retired conscionable what Wells Fargo sees successful them.

Zscaler (ZS)

We’ll commencement with Zscaler, a cloud-focused cybersec institution that has been successful cognition since 2007. Zscaler’s attack to cybersecurity is based connected ‘zero trust,’ an attack that treats everything arsenic a imaginable menace and provides unafraid extortion for some apps and data. The institution makes extended usage of AI exertion and leverages that to springiness real-time web information and extends that extortion to IoT and OT. Zscaler’s Zero Trust level is designed for endeavor use; users tin acceptable up unified information efforts without having to interlock assorted disparate information measures.

Better for the user, Zscaler’s level is afloat scalable and applicable to immoderate backstage organization. The company’s customers tin bash distant with abstracted web firewalls, utilizing the 1 Zscaler strategy arsenic wide protection. The level allows for absorption and supervision of secured devices, classification of caller devices, power implicit entree and use, and designation of incoming threats.

Zero Trust provides respective advantages, including superior strategy protection, accrued agility and productivity, and reduced complexity and costs. Zscaler boasts that it secures implicit 500 cardinal transactions each time and that immoderate 40% of the Global 2000 companies usage the platform.

In the company’s fiscal 2Q26 net release, Zscaler reported $815.8 cardinal successful revenue, a full that was up 26% year-over-year and was $16.8 cardinal amended than had been expected. The bottommost enactment was $1.01 per stock by non-GAAP calculations; this bushed the forecast by 11 cents per share. The institution realized escaped currency travel successful the 4th of $169.1 million, up from $143.4 cardinal year-over-year and reaching 21% of full revenue.