Darktrace shares fall after JPM starts coverage with ‘underweight’ rating

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Reuters UK

(Reuters) – Rising costs are likely to dent cyber security firm Darktrace’s profit growth, J.P.Morgan analysts said on Tuesday, as they started coverage of the stock with an “underweight” rating. J.P.Morgan is the only brokerage among seven to have an “underweight” rating, the equivalent of a “sell” rating, on the company’s shares. Darktrace’s stock fell nearly 8% to 416p, the lowest in more than a month. The company’s latest forecast implied a year-on-year increase in net constant currency annual recurring revenue (ARR) of between 24% and 29%, versus previous forecast of 19% to 24%. “With ARR…

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