Darktrace Stock Price Forecast September 2021 – Time To Buy Darktrace Stock?

Stocks of the leading British-American AI cyber security company Darktrace (LSE: DARK) are in the green today, after closing at 681.5p on September 3rd (17:52 UTC+1). Darktrace stocks have risen over 100 per cent from their market debut price since the organization’s IPO in the 1st quarter of 2021. Darktrace’s stock market debut undoubtedly underlined investors’ trust in the cyber security business. As organizations worldwide are striving to maintain data protection, the cyber security industry is becoming increasingly critical within the interconnected global market.

Darktrace – Technical Analysis

According to the financial statement from Darktrace, the market cap of the cyber security company is at £4.496 billion with total assets worth £217.518 million. Revenue for 2020 was £158.12 million compared to £105.87 million.

Moving averages for Darktrace such as Exponential Moving Average (10) (627.0), Simple Moving Average (10)(614.2), Exponential Moving Average (20)(621.9), and Simple Moving Average (20)(608.3) are pointing towards buying. Oscillators such as Relative Strength Index (14)(63.5), Stochastic %K (14, 3, 3)(92.7), Commodity Channel Index (20)(205.7), and Average Directional Index (14)(19.9) are neutral.

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Recent Developments

Darktrace was launched in 2013 as the world’s foremost AI for cyber security, founded by a group of cyber security experts. Their debut in the stock market in April this year was one of the biggest spectacular initial public offerings (IPOs) of 2021. As a result, the organization was designated one of TIME Magazine’s ‘100 Most Influential Companies’ this year, along with Apple, Headspace, and Bumble, which offers enterprise-wide cyberspace protection to over 4,000 businesses in over 100 nations.

Coming to the recent developments in the company, Darktrace has recently joined the Microsoft Intelligent Security Association (MISA) in September. MISA is a community of autonomous software manufacturers and Managed Security Services Providers who have incorporated their security mechanisms with Microsoft’s in order to effectively protect against rising cyber-attacks. However, Darktrace’s stock appears to be undervalued in comparison to its US counterparts, which may lead to a potential offer for the company in the extremely fragmented cyber security industry.

Should You Buy Darktrace Stocks?

According to the government’s cabinet for technology, entertainment, media and sport, only about 40% of companies in the United Kingdom experienced a cyber-breach or intrusion in the 12 months prior to March in 2021, with 21% of those organizations sacrificing information, funds, or assets. Going by the prediction of expert analysts, between 2021 and 2028, the worldwide cyber security industry will expand at a compound annual growth rate of approximately 11%.

Having stated earlier, Darktrace’s stock appears to be inexpensive in contrast to its US peers. This figure implies that the stock may double in value, as the disparity in price demonstrates the potential here. Darktrace has lots of potentials to expand even though the market doesn’t revalue the company to a higher multiple. With projected revenues of over £270 million in 2022, it has a tiny stock of the worldwide cyber security industry. With such a protracted development window ahead of it, it is fair to predict that the Darktrace stock price will double in value in the next several years as growth materializes.

However, even if the company is reflecting potential growth in the coming years, it is preferable to put the stock price under speculation at this moment for proper valuation in the future.

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