DAVY VIEW

Darktrace (DARK) was the first company to bring artificial intelligence (AI) to the core of its cybersecurity solution, providing protection against unknown ‘zero-day’ threats. The technology appears to perform this function well, although question marks remain over DARK’s market positioning and sales efficiency. The equity looks fully valued at present, and it seems that too much buy-in to possibly uncertain future growth opportunities is required to deliver upside. We initiate with a ‘Neutral’ recommendation and a 450p price target.