11:32 AM EST, 12/02/2024 (MT Newswires) -- CrowdStrike ( CRWD ) and Palo Alto Networks ( PANW ) are increasing discounts to accelerate market share gains in cybersecurity, creating potential broader pricing pressures across the sector, Morgan Stanley said in a report on Monday.

The firm said it remains positive on long-term trends in cybersecurity, driven by expanding technology industry with generative artificial intelligence and public cloud adoption.

However, a tougher spending environment, pricing pressures, uncertain US fiscal policies, and high valuations necessitate a more selective approach for 2025.

Morgan Stanley downgraded SentinelOne ( S ) and Tenable (TNB) to equal-weight from overweight and upgraded Okta ( OKTA ) to overweight from equal-weight. Okta's ( OKTA ) price target was raise to $97, while Tenable's price target was lowered to $47.

The brokerage also raised price price target for Fortinet ( FTNT ) , CrowdStrike ( CRWD ) and CyberArk Software ( CYBR ) to $113, $390 and $316, respectively.

Price: 346.98, Change: +1.01, Percent Change: +0.29