CyberArk, Palo Alto Networks, Zscaler see strength heading into Q4
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Going into earnings season, investment firm Wedbush Securities did another round of channel checks for the cybersecurity sector and expects it to be an "okay" period for the sector as a whole, with some companies performing better than others.

Analyst Taz Koujalgi noted that feedback for companies such as CyberArk (NASDAQ:CYBR), Palo Alto Networks (NASDAQ:PANW) and Zscaler (NASDAQ:ZS) was positive, but it was "mixed" for companies like Okta (OKTA), Fortinet (FTNT), CrowdStrike Holdings (CRWD), SentinelOne (S) and Check Point Software (CHKP).
Koujalgi noted that more discounting and bundling helped companies improve momentum in the fourth-quarter compared to the third-quarter, but guidance for 2023 should offer a few surprises.
Additionally, the momentum that had been seen in the firewall space has slowed down and any refreshes are getting pushed out, Koujalgi added.
Koujalgi also noted that federal spending is still seen as a "bright spot" for the sector, as 2023 projects are already fully funded.
Last month, Morgan Stanley listed Palo Alto Networks (PANW) among its top software picks for 2023.