Latest news with #RedCanary
Yahoo
2 days ago
- Business
- Yahoo
Zscaler, Inc. (ZS) Acquires Red Canary; Evercore ISI and Cantor Fitzgerald Maintain Bullish Stance
With strong share price gains and significant hedge fund interest, Zscaler, Inc. (NASDAQ:ZS) secures a spot on our list of the 11 Hot Software Stocks to Buy Now. Pixabay/Public domain On July 23, 2025, Evercore ISI reiterated its 'Buy' rating on Zscaler, Inc. (NASDAQ:ZS) with a $290 price target. A few days later, on August 5, 2025, Cantor Fitzgerald also maintained its 'Buy' rating with a $340 price target. These bullish ratings follow the company's acquisition of Red Canary, a leader in AI-driven threat management. The acquisition was announced on August 1, 2025. While Red Canary will initially operate as a separate unit, it will integrate its agentic AI technology with Zscaler, Inc. (NASDAQ:ZS)'s Data Fabric for Security. The result of this integration will be the industry's most comprehensive Security Operations Center solutions. Relying on 500 billion daily transactions on the Zscaler Zero Trust Exchange, the integrated platform is expected to enhance detection, investigation, and response times. It will also unify security operations for customers and partners globally. With its global Zero Trust cloud security platform, Zscaler, Inc. (NASDAQ:ZS) enables secure user, device, and application connectivity, preventing cyberattacks and data loss. It is included in our list of the hot stocks to buy. While we acknowledge the potential of ZS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best AI Stocks to Buy Under $3 and Bill Ackman Stock Portfolio: Top 10 Stock Picks. Disclosure: None.
Channel Post MEA
04-08-2025
- Business
- Channel Post MEA
Zscaler Completes Acquisition Of Red Canary
Zscaler has announced it has completed its acquisition of Red Canary. Together, the companies will deliver unified Security Operations, combining sophisticated exposure management with agentic AI-driven threat management. To ensure continuity for its customers, Red Canary will initially operate as a separate business unit within Zscaler. It will benefit from Zscaler's scale and resources while continuing to innovate its advanced Security Operations Center (SOC) capabilities. Zscaler will integrate Red Canary's agentic AI technology with its Data Fabric for Security to deliver one of the industry's most comprehensive SOC solutions—enabling customers to run their own SOCs more efficiently and allowing partners to offer powerful managed SOC services based on this foundation. 'We're delighted to officially welcome Red Canary to the Zscaler family,' said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. 'By combining Red Canary's domain expertise in advanced SOC operations with detections, signals, and context from 500 billion daily transactions in the Zscaler Zero Trust Exchange platform, we will deliver solutions that help customers strengthen their cyber defenses and efficiently advance their security operations. Following the successful integration, Zscaler will offer the industry's most robust security platform that combines the power of Zero Trust with automated security operations, and provides protection that spans communications, exposure management, and threat detection, investigation, and response.' Zscaler's security operations solutions streamline detection and remediation of exposures and threats. The 10 years of threat intelligence Red Canary has amassed, along with its automated runbooks and agentic AI operations, will yield combined solutions that enable organizations to confidently detect, triage, investigate, and respond to cyber threats faster and with greater precision. 'This is a massive step forward in our mission to improve security operations, not just for our customers, but for the entire cybersecurity community,' said Brian Beyer, CEO of Red Canary. 'As part of Zscaler, we're bringing together Red Canary's proven AI-powered threat detection and deep security operations expertise with Zscaler's leading zero trust platform. Together, we will empower customers and partners to find and stop threats faster—dramatically reducing investigation and response times. By simplifying and unifying security operations, we're setting a new standard for protecting against threats in an ever-changing landscape.' Following the close of the acquisition, Red Canary will be branded as Red Canary, a Zscaler company.
Yahoo
21-06-2025
- Business
- Yahoo
Wells Fargo Upgrades Zscaler (ZS) Stock, Lifts PT
Zscaler, Inc. (NASDAQ:ZS) is one of the 10 software stocks analysts are upgrading. On June 13, Wells Fargo upgraded the company's stock to 'Overweight' from 'Equal Weight,' lifting the price objective to $385 from the previous target of $260. As per the firm, software infrastructure spending in H2 2025 is expected to be driven by the adoption of agentic AI, which tends to benefit several software companies, including Zscaler, Inc. (NASDAQ:ZS). An employee standing in front of a large data center, looking toward the future of cloud security. The research firm cited Zscaler, Inc. (NASDAQ:ZS)'s potential to reach $5 billion in annual recurring revenue by fiscal 2027 as one of the measures of the upgrade. Despite the increase in the stock price YTD, the firm believes it still possesses significant room for multiple expansion. Well Fargo expects more than 20% billings growth in FY 2026 and continues to see margin expansion continuing, together with revenue growth. Notably, the company's stock has increased by ~66% on a YTD basis. In May 2025, Zscaler, Inc. (NASDAQ:ZS) signed a definitive agreement to acquire Red Canary, which is a leading managed detection and response (MDR) vendor. Through the combination of Zscaler, Inc. (NASDAQ:ZS)'s high-volume and high-quality data with Red Canary's domain expertise in MDR, Zscaler, Inc. (NASDAQ:ZS) plans to ramp up its vision to deliver AI-powered security operations. While we acknowledge the potential of ZS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Sign in to access your portfolio
Techday NZ
12-06-2025
- Business
- Techday NZ
Red Canary deploys AI agents to slash security investigation times
Red Canary has announced the introduction of a suite of AI agents designed to perform tier 2 security investigations at the pace and calibre of experienced analysts. These AI agents have already conducted over 2.5 million investigations, reportedly reducing the average investigation time by 90%. The agents are trained on a decade's worth of operational data and provide contextual gathering, alert enrichment, and recommended actions for identified threats, with a stated aim to lessen alert noise and assist security teams in managing evolving threats without increased complexity or risk. Reducing manual security tasks The AI agents are described as specialists across every phase of detection, investigation, and response. They cover roles including security operations centre (SOC) analyst, detection engineering, threat intelligence, and user analysis, automating many procedures traditionally undertaken by security experts. For organisations, this means the agents automate both Tier 1 and Tier 2 analyst tasks in various environments such as cloud, identity, Security Information and Event Management (SIEM), and endpoint systems. According to Red Canary, this leads to faster root cause analysis and remediation of security incidents. In addition, a threat intelligence agent compares threats against known profiles, identifying new trends and aiding intelligence operations. Impact and efficiency Red Canary states that, by automating analyst-level workflows, customers have reduced investigation times from over 20 minutes to under three minutes on average, with the company citing a 99.6% customer-validated true positive rate. The system is built to be enterprise-grade, with training on 10 years of real-world data and with continuous oversight by security operators to ensure consistency and reliability. "Several years ago, we introduced automation to replace repetitive Tier 1 work," said Brian Beyer, CEO and Co-founder of Red Canary. "Now, by combining the best of agentic AI with AI agents that are equipped with years of frontline experience, we're taking the next leap—accelerating Tier 2 investigations with the speed of automation and the judgment of experienced security analysts. This shift allows every Red Canary detection engineer to focus on Tier 3-level analysis, delivering deeper insights and stronger outcomes for our customers." Practical use cases Red Canary offered specific examples to illustrate the value of the AI agents. In one scenario, a user behaviour analysis agent flagged an anomalous Salesforce login, missed by other tools. A reputation analysis agent added context by identifying the login as originating from a high-risk IP address. Red Canary's team validated the threat and quickly alerted the customer, allowing for immediate password reset and containment within minutes. Another example involved a compromised account detected through alert enrichment and user behaviour analysis. These agents identified a suspicious application and proxy activity from an unfamiliar ISP and geography. A Red Canary detection engineer confirmed that a user's access token had been compromised and notified the customer's security operations team for swift response. Scope of agent capabilities The suite currently includes agents specialised for specific systems, including Microsoft Defender for Endpoint, Crowdstrike Falcon Identity Protection, AWS Guardduty, and Microsoft Sentinel. These agents are designed to deliver consistent procedures for their respective environments. The response and remediation agent offers concrete steps for both addressing current incidents and hardening systems to reduce future risk, while the user baselining and analysis agent highlights deviations in user activity by comparing real-time behaviour to historical patterns. Red Canary underscores that its agents are not fully autonomous decision-makers; instead, their outputs are subject to the oversight of experienced detection engineers, aiming to balance automation, reliability, and human judgement. This development represents an ongoing trend in the security sector towards applying artificial intelligence to reduce manual workloads, lower incident response times, and support strained security teams. According to Red Canary, its focus remains on reducing noise, accelerating triage, and providing expert analysis for each threat faced by its clients.
Forbes
05-06-2025
- Business
- Forbes
Zscaler Buying Red Canary: A Canary In The Cybersecurity Coalmine?
Zscaler Acquires Red Canary in $675 Million Deal, Signaling a New Chapter in Cybersecurity Services ... More Integration. Hot on the heels of Google's eye-popping acquisition of Wiz for a rumored $23 billion valuation, the cybersecurity market is once again making headlines, this time with Zscaler's announcement that it will acquire Red Canary, a leading Managed Detection and Response firm. While the numbers may be smaller, the strategic implications may prove just as significant. This is not just another consolidation play in the crowded MSSP and MSP space. It's something different. For the first time at this scale, a cloud-native firewall vendor is acquiring a services-first cybersecurity company. It reflects a broader shift in a turbulent market, where traditional boundaries between software, platforms and services are collapsing in favor of integrated, outcome-driven solutions. Zscaler, a cloud-native security leader processing over 500 billion transactions daily, serves ... More nearly half of the Fortune 500 through its Zero Trust Exchange platform. Zscaler, founded in 2007, built its reputation as a pioneer in secure cloud connectivity. It operates a global security cloud with more than 150 data centers and processes over 500 billion transactions per day. Nearly half of the Fortune 500 relies on Zscaler's Zero Trust Exchange platform to securely connect users, devices and applications. Its focus has long been on scalable, identity-based access controls and policy enforcement — not services. Until now. Red Canary, founded in 2013 and based in Denver, has become one of the most respected names in MDR. Its platform offers around-the-clock detection, investigation and response for enterprise customers, helping fill the growing gap in skilled security operations talent. With an estimated $140 million in annual recurring revenue and a reputation for precision threat analytics, Red Canary is a natural bolt-on for a company looking to deliver turnkey threat protection. Zscaler is acquiring Red Canary to accelerate its roadmap for an AI-powered, full-stack Security Operations Center. This includes not just technology, but skilled services, an area where most firewall vendors have historically stayed out. By combining Red Canary's MDR capabilities with Zscaler's deep cloud visibility, the deal promises: It's not just an expansion. It's a signal that the lines between infrastructure vendors and cybersecurity service providers are vanishing. The reported deal size is approximately $675 million, split between cash and equity. That places the transaction at roughly 5.7x Red Canary's $140 million ARR, in line with market expectations for high-growth cybersecurity firms. The deal is expected to close in August 2025, pending regulatory approval. By comparison, recent MDR acquisitions have either been quiet roll-ups or smaller tuck-ins. This one is different. Zscaler is a publicly traded, platform-first company paying a premium to bring a services company in-house. It sets a precedent. We have already seen early signs of this convergence. SonicWall acquired MDR firm Solutions Granted in late 2023. Fortinet has made moves toward managed SASE offerings. Cisco, Palo Alto Networks, Check Point and others are undoubtedly watching closely. But Zscaler's Red Canary deal may be the moment this trend breaks into the mainstream. It challenges the old notion that firewall and network security companies should stay product-focused and leave services to the MSSPs. That barrier is officially gone. This is a compelling moment in the evolution of cybersecurity. With AI, cloud and geopolitical risk accelerating enterprise security needs, customers are demanding outcomes not just tools. That means companies like Zscaler will increasingly have to deliver both software and services, seamlessly integrated. The Zscaler–Red Canary acquisition may be remembered not just for its price tag, but for what it represents: the beginning of a new era where cloud security platforms and service providers are no longer distinct categories. And this may just be the beginning.
