Shares of Ironnet Inc (NYSE:IRNT) are trading higher by 4.50% on Friday as analyst at BTIG Research initiated a coverage on the stock with Neutral rating.
Early stage growth opportunity; early stage risks, initiate Neutral — BTIG Research
BTIG’s Gray Powell said, “We believe IRNT is in the early stages of a potentially large growth opportunity. The company is well positioned with a unique threat detection model that helps customers protect against highly sophisticated and never-before-seen malware. We also think the company should benefit from secular tailwinds in the security space, as the recent increase in high-profile breach activity this year is increasingly driving the adoption of behavior-based threat detection products like IRNT’s Collective Defense platform.
As a result, we see potential for IRNT to gain share in its core NDR target market and grow recurring revenue at a rapid pace the next few years. However, as an early-stage growth company at ~$25MM in scale today, IRNT has a limited operating history. Plus, we have little insight on historical financial trends, as IRNT came public through a recent de-SPAC transaction. To this point, FY22 ARR guidance is heavily weighted to the second half of the year and implies a large acceleration in growth. Lastly, the stock has a limited float, which has led to greater share price volatility in the last couple of weeks.”
