Artificial intelligence is also used by cyber gangsters. This increases the risk of hacker attacks. Against this backdrop, Goldman Sachs is optimistic about the cybersecurity sector’s prospects for 2025.
• Cybercriminals use AI
• Goldman Sachs sees good prospects for US cybersecurity industry
• Potential of Cloudflare and Fortinet highlighted
In Allianz’s annual risk barometer, cyber attacks have now ranked first as the greatest risk for German companies for the fourth year in a row. This is due to the rapid progress in information technology: “Artificial intelligence is also gaining ground among criminals,” explained Jens Krickhahn, head of the cyber insurance business at Allianz Commercial.
Cybersecurity potential
This danger exists worldwide, which is why a study by the investment bank Goldman Sachs also came to the conclusion that the general industry outlook in the US cybersecurity sector was optimistic, wrote the financial portal “Investing.com”. While there are geopolitical and macroeconomic uncertainties, particularly in key markets such as Europe, companies with robust platform strategies and diversified offerings are well positioned to outperform in 2025 and beyond.
According to the Goldman Sachs study, annual growth of nine percent is expected for the sector until 2025. Although this is slightly less than in 2024, the slowdown tendencies will stabilize, it said.
Which companies benefit?
According to Goldman Sachs, the winners are likely to be the companies Fortinet and Cloudflare, whose shares have already increased by 63 and 31 percent, respectively, in 2024.
The experts at the US investment bank see an upside potential of 20 percent for Fortinet shares and therefore continue to recommend buying the title. The US software company, which offers a platform to aggregate, consolidate and exploit AI-powered cybersecurity, is well positioned to benefit from an uptick in the firewall renewal cycle, with analysts highlighting the broad cross-selling opportunities in Fortinet’s network portfolio.
Goldman Sachs even sees an upside potential of 28 percent for Cloudflare shares, which is why the recommendation for the stock was upgraded to “Buy” with a price target of $140. The cybersecurity and software company could benefit from new monetization opportunities in edge computing and AI inferencing, it said.
Editorial team finanzen.net
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