Rising ransomware attacks: 3 cybersecurity stocks to buy now - Kalkine Media

September 10, 2021 12:14 PM BST | By Nidhi Gupta
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Highlights 

  • In July 2021, Kape’s 100% owned privacy software provider - Private Internet Access, inked a content provision agreement for Private Internet Access VPN with 3 Hong Kong, a cellular operator.
  • Crossword Cybersecurity took over Stega UK Limited, a threat intelligence and monitoring firm, recently.
  • Darktrace estimates revenue for FY 2021 at $278 million, up by 40% year-on-year.

Rising instances of ransomware and malware attacks have affected both private and central agencies. According to the Department for Digital, Culture, Media and Sport, 8% of the businesses in the UK experienced a ransomware attack in the last one year, with the figure increasing to 14% and 16% among medium and large businesses, respectively.

In the past, ransomware attacks on NHS and other businesses are proof of the damage a cybersecurity attack can have. Businesses are thus investing in cybersecurity solutions and services to keep such cyber threats at bay. The increasing trend of remote working and the growing need to access confidential company data over unprotected networks is making the adoption of cybersecurity solutions all the more necessary. Growing demand for these security solutions and services is driving up the share prices of cybersecurity providers.

(Data source: Refinitiv)

Here we take a detailed look at 3 cybersecurity stocks and explore the investment prospects in these companies.

Kape Technologies Plc (LON: KAPE)

Kape Technologies is a digital security and privacy software company. The company’s shares were trading at GBX 356.50, down by 0.42% on 10 September 2021 at 9:40 AM GMT+1.

In July 2021, Kape’s 100% owned privacy software provider - Private Internet Access, inked a content provision agreement for Private Internet Access VPN with 3 Hong Kong, a cellular operator.

Kape Technologies’ revenue surged to $95.7 million for H1 2021 compared to $59.0 million in H1 2020, representing year-on-year increase of 60%. The company’s adjusted EBITDA is estimated at $28.7 million for H1 2021 (H1 2020: $16.1 million), up by 79%. 

Kape Technologies’ market cap stands at £801.33 million, and it has given a return of 93.54% over the last one year to shareholders.

Crossword Cybersecurity Plc (LON: CCS)

Crossword Cybersecurity is a technology company focused on risk management and cyber security. Its shares were trading flat at GBX 33.50 on 10 September 2021 at 8:47 AM GMT+1.

In August 2021, Crossword Cybersecurity announced the takeover of Stega UK Limited, a threat intelligence and monitoring firm, subsequent to its oversubscribed £5.0 million fundraising.

Crossword Cybersecurity recorded revenue of £1.6 million for 2020, representing year-on-year increase of 25%. Its Software as a Service (SaaS) and consulting revenues rose by 39% in 2020 compared to 51% in 2019. The company’s cash balance at the end of the year stood at £1 million.

Crossword Cybersecurity’s market cap stands at £25.11 million, and it gave a return of 28.85% over the last one year to shareholders.

Darktrace Plc (LON: DARK)

Darktrace is an international provider of AI-based cybersecurity solutions. The company ended FY 2021 with about 5,600 customers, an increase of 42% year-on-year. Recently, the company was admitted to the FTSE 250 index.

Darktrace shares were trading at GBX 732.00, up by 0.90% on 10 September 2021 at 9:54 AM GMT+1 and its market cap stands at £5,061.36 million.

Darktrace estimates Annualized Recurring Revenue (ARR) as of 30th June 2021 to be $340 million, representing a year-on-year growth of 44%. The company also estimates revenue for FY 2021 at $278 million, up by 40% year-on-year.


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