Morgan Stanley Highlights Three Cybersecurity Winners

Morgan Stanley recommends Palo Alto Networks, CrowdStrike, and SentinelOne as top cybersecurity stocks ahead of upcoming earnings season.
The sector outperformed the broader software basket by over 20% in the past month, driven by AI tailwinds and technical‑debt removal.
Analysts raised price targets; Palo Alto launched Idira, CrowdStrike introduced Jet app, SentinelOne set a $17 target based on 36× FY27 EV/FCF.
Risks include heightened competition from Microsoft and other providers, and SentinelOne’s difficulty moving up‑market into large‑enterprise customers in the near term.