Darktrace PLC (LSE:DARK) has had its share price target hiked by analysts as it continues to become “a little more investible over time”.
Broker Liberum believes that following the culmination of a review by consultant EY, Darktrace has been able to improve profitability and better communicate its technology offering.
The UK broker therefore raises Darktrace’s price target from 470p to 480p, representing a 28% premium to the cyber security firm’s current market value.
On Thursday, the London-listed group’s shares rallied after underlying profits jumped 87% in the first half of the financial year, thanks in part to a surge in AI phishing scams.
As a result, Liberum has upped its full-year profit guidance for 2024 by 17% and hiked 2025 estimates by 14%.
Despite being given a ‘buy’ rating by the bank, Liberum pointed out there are still risks in the company, citing a lack of disclosure about its products and its low levels of R&D.
Analysts are confident “that these issues are more than reflected in valuation multiples which are half those of US peers.”
Shares in Darktrace were up 2% on Friday, having opened trading at around 380p.