BofA says AI adoption boosts demand for cybersecurity, making firms net beneficiaries despite broader software multiple compression.
The bank kept ratings on Sailpoint, SentinelOne and Zscaler but cut price targets to $16, $16 and $175 respectively.
Cuts reflect slower billings, longer sales cycles and rising competition from platform vendors bundling security solutions.
BofA also sees AI driving growth for CDN firms Akamai and Fastly, whose stocks rose 26.6% and 5.2% respectively.