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Investing.com -- Bank of America analyst Tal Liani said in a note on Monday that sentiment in the networking and cybersecurity sectors “should continue to support strong momentum,” as spending on AI infrastructure and enterprise security remains robust.
“The networking and cybersecurity sectors continue to benefit from strong momentum,” the analyst wrote, noting that shares of Cisco (NASDAQ: CSCO), Arista (NYSE: ANET), and Ciena (NYSE: CIEN) were up 22%, 44%, and 164% respectively over the past 12 months, while cybersecurity peers CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Zscaler (NASDAQ: ZS) have gained 57%, 11%, and 56%.
BofA said “fundamentals across networking remain healthy, driven by elevated spending levels on the back of AI infrastructure buildouts,” while cybersecurity growth is supported by “growing enterprise security budgets and continued technology evolution.”
The bank raised its price objectives for Palo Alto Networks ($240 from $215), Zscaler ($355 from $340), Ciena ($200 from $155), and CrowdStrike ($535 from $470), while lowering targets for SentinelOne (NYSE: S) ($19 from $21) and Akamai (NASDAQ: AKAM) ($80 from $100).
For Palo Alto Networks, BofA reiterated its Buy rating, citing “the company’s solid fundamentals, TAM expansion, and apparent success in new areas.”
The analysts said Palo Alto’s “diversification strategy appears to be working well,” adding that its presence in “software-based Firewalls (FWs)… segments that grow over 20% per annum” has been a key strength.
Zscaler was also maintained at Buy, with BofA saying Zscaler “continues to perform well across its key growth vectors including AI security, Zero Trust, and data security,” and is seeing “strong traction with its Z-Flex program,” which grew 50% quarter over quarter in the fourth quarter of 2025.