AI risks driving companies to increase investment in network protection! CrowdStrike (CRWD.US) and Zscaler (ZS.US) receive target price upgrades on Wall Street.

As artificial intelligence security risks continue to attract market attention, Wall Street believes that enterprise network security spending may enter a new growth cycle, with several cybersecurity companies receiving target price upgrades as a result. KeyBanc stated that the recent launch of Claude Mythos Preview by Anthropic has sparked high industry interest, showcasing the system's ability to use AI to discover and exploit software vulnerabilities, potentially driving further increases in enterprise network security investment. Last month, Claude Mythos Preview received widespread market discussion for its ability to identify and exploit multiple previously undiscovered software system vulnerabilities. KeyBanc's recent industry surveys have shown that enterprise network security budgets are expected to show an upward trend as a result. In response to this, the institution has raised the target prices of several cybersecurity companies, including CrowdStrike, Okta, Zscaler, and Netskope. Specifically, KeyBanc has significantly raised CrowdStrike's target price from $525 to $700 and maintained a "overweight" rating. Analysts Eric Heath and Ritu Kashyap stated that CrowdStrike's performance in the current quarter has been strong and believe that the company is poised to benefit from the growth in AI security demand brought by Mythos. They pointed out that CrowdStrike has a leading edge in areas such as network attack surface management, vulnerability management, patch management, cloud security, and security services, all of which could become key investment areas in AI security in the future. In addition, the analysts mentioned that the company's Flex purchasing model, as well as the "incredible demand growth after the release of Project Quiltworks by management" may further drive performance. Meanwhile, KeyBanc has slightly raised Okta's target price from $95 to $103. Analysts noted that with the increasing popularity of AI smart agents, the importance of identity authentication and access management is on the rise. Industry experts believe that compared to traditional Identity Governance and Administration (IGA) and Privileged Access Management (PAM) vendors, access management platforms have a stronger strategic position in the AI smart agent security field. However, KeyBanc also expressed some concerns about Okta's downsizing plan through 2027. On the other hand, KeyBanc has raised Zscaler's target price from $160 to $190 and maintained an "overweight" rating ahead of the company's third-quarter earnings release for fiscal year 2026. Analysts believe that as enterprises increasingly focus on network isolation in AI environments, secure browsing, Data Loss Prevention (DLP), and outbound network security needs, both Zscaler and Netskope are expected to benefit. Netskope's target price has also been raised from $13 to $15 and an "overweight" rating has been maintained.