By Sam Boughedda
Barclays singled out PTC (NASDAQ:PTC), Rapid7, Inc. (NASDAQ:RPD), Check Point Software Technology (NASDAQ:CHKP) and CyberArk Software (NASDAQ:CYBR) as having favorable setups in security in a third-quarter preview note on Tuesday.
Barclays currently has an Overweight on PTC, Rapid7 and CyberArk, while it has an Equal-Weight rating on Check Point Software.
Analysts said that for PTC, they believe FY23 ARR guide will contemplate double-digit growth and potentially better FCF, as "restructuring is complete and pricing increase contributes," on top of what they believe will be a better 4Q ARR.
On Check Point Software, Barclays thinks the company will also benefit from its second price increase and set up for potential revenue acceleration as subscription inches up closer to the dragging maintenance mix.
Meanwhile, for Rapid7, the analysts stated the firm thinks third-quarter net new ARR "sets a low bar," while it is "structurally less exposed to VM," and at sub 4x sales Barclays feel the downside is limited.
Finally, on CyberArk, the analysts wrote that they believe demand remains healthy and the transition will continue accelerating revenue with trough margins.