We're Adding to This CyberSecurity Play and Lifting Its Price Target
Gartner sees a reacceleration in information security spending ahead.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
CIBR | Buy | 220 | 73.75 | 2,248 | 3.1 |
After you receive this Alert, we will buy 220 shares of the First Trust Nasdaq Cybersecurity ETF CIBR at or near $73.75. Following the trade, CIBR shares will account for roughly 3.1% of the Pro Portfolio's holdings.
We are using the post-earnings selloff in shares of Check Point Software CHKP following its "beat-and-reiterate" quarter, as well as the move lower in Palo Alto Networks PANW after its formal takeover announcement of CyberArk Software CYBR to pick up additional CIBR shares. Both are holdings in the ETF, with Palo Alto being a larger holding than Check Point. As we make this buy, we will also lift our CIBR price target to $85 from $78 to reflect the expected acceleration in cybersecurity spending in the coming quarters.
That re-acceleration is tied in part to the growing use of AI in cyberattacks, which is expanding their scope and scale. That helps explain why research firm Gartner upped its estimate of worldwide spending on information security to $213 billion for 2025 yesterday, from $193 billion in 2024.
The firm also sees spending across network security, security services, and security software growing at a quick pace next year, near 12.5% compared to 2025’s 10%. A key area behind the re-acceleration? The concerted enterprise effort to shore up cloud security capabilities, particularly in relation to AI workloads.
Following the trade, we will still have ample room to expand the Pro Portfolio’s exposure to CIBR should we see a wider market pullback emerge. If such an event unfolded, CIBR shares near $69 would make for a wonderful addition, which also happens to be our established pick-up point. For now, our $63 panic point remains, but as CIBR shares move higher, we’ll lift that level in a commensurate manner.
Catalysts we will be watching include subsequent M&A activity in the space as well as quarterly results and guidance from key CIBR holdings. That short list includes Broadcom AVGO, Cisco CSCO, Palo Alto Networks, CrowdStrike CRWD, Infosys INFY, Cloudflare NET, CyberArk, Leidos LDOS, and Zscaler ZS. Those top nine positions account for more than 57% of CIBR’s weighting.
And as we make this trade, we will continue to keep a close watch on the market’s trajectory, relative strength index levels, and Pro Portfolio holdings that have moved above 4% position sizes and are approaching 4.5%.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the “+” next to the position’s ticker to sort Purchase and Date data.)
At the time of publication, TheStreet Pro Portfolio was long CIBR.
